No. of Recommendations: 0
Generally speaking, the time to buy bonds, at least if you are talking about something longer term than 90 day Treasuries, is when interest rates are high, and likely to have peaked. Then you get the high interest rate, and when interest rates are lowered you get some capital appreciation.

Of course, the downside of that is that when interest rates are lowered the stock market generally rallies, and you can make more money in stocks.

Many years ago, I had an account at a bank where there was a financial adviser sitting in the lobby advertising his expertise. The market had tanked a few months earlier, and interest rates were being raised. The financial adviser told me that when the stock market began to go down he told his clients to go to bonds. Of course, that was a mistake because interest rates kept going up and they lost the money as the bonds went down to compensate for the higher interest rates. It was really pathetic, since it had been clear that interest rates were going to continue to go up.

"Pathetic", said Eeyore. "No better from this side either."
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.