UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next
Author: imcharliehm Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: What would you do? Date: 8/24/2001 8:49 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My suggestion would be for you to have [most] of your cake but eat [a bit of]it, too.

Figure out how marketable each of your 8 bonds is and which one is currently offering the best opportunity for capital gains. Then figure what you would truly net (after taxes, commissions, etc.) if you sold it, and figure out what you would do with the money. E.g., pay down consumer debt or a mortage, take a trip, use it to explore an asset class that is new to you, etc.)

If you're only going to gain small money that you don't know what to do with, leave things alone on the theory: "If it ain't broke, don't fix it." If you do have a worthwhile project for the money, then made the trade with whatever portion of your gains seems appropriate.

One advantage of selling just one bond, even if you just break even on the deal, is that the experienced gained will sharpen your attention toward future opportunites and when they might be captured. In other words you are hugely in the money on your ladder now because your timely was fortuitous. Down the road the Fed will be raising again and the interest rate cycle will repeat itself and you'd like to be able to repeat the trade you did a second time. So selling a bit now is just practice against the time when you made the next trade.

Charlie
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement