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Author: bs52578c Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 113  
Subject: Re: US T BONDS 102 Date: 2/27/2001 12:16 PM
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T-bonds as an investment are fairly steady. If I understand your notes correctly, what she did was buy a T Bond contract at the price of 56, and when the contract price gets to 64 she will sell. If the contract doesn't get to 64, then she won't sell, which means at the due date of the contract, they'll deliver you a T-Bill.

From what I know about commodity investing, it sounds like she just wanted to buy some bonds at a discount before they come due, or make a couple of bucks before it comes due.

Commodities are a rather risky investment method to most people at Fool.com, but the rewards can be astounding. Instead of stocks, you buy and sell contracts instead of stocks. You can make money whether the value of the contract goes up or down.

If you feel the price of the commodity is going to go down, you can take a "Sell" position on a contract and promise to sell the contract at that price... then when the contract value goes down, you can "Buy" the commodity at a lower price to get out of the transaction ... therefore making a profit. You bought for less than you sold.

It sounds like your wife expects the price of the t-Bond to go up to 64... so she bought at 56, planning to make a profit of 8 per contract.

Truthfully, I'd be interested in where she got her advice or indicator. I'm also starting to research commodity investing as a way to do some explosive short-term investing... but Fool.com has nothing on commodities.

Barry
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