UnThreaded | Threaded | Whole Thread (37) | Ignore Thread Prev | Next
Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Re: Investing in bond funds for trip down Date: 9/13/2007 6:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
The question is: what happens to the long bond if the ROW (Rest Of World) decides they've had enough of US inflation?

Are you saying that the ROW historically has *less* inflation than the US? Because that's just flat-out not true. For all the trials & tribulations of the USD, it has never been re-adjusted by lopping off a zero or two---unlike most of the ROW currencies.

You are also, I think, assuming that the ROW puts money into the US to collect interest. This is mostly false. The main truth is that the ROW puts money into the US is because it is the safest place to put it. They are looking at it from the Will Rogers point of view: I AM NOT SO MUCH CONCERNED with the return _on_ capital as I am with the return _of_ capital."
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (37) | 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."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Apple

The Saddest Place on iPhone Day
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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