No. of Recommendations: 0
Most of the bond market, pick a rating, is overpriced right now. This makes risky choices riskier because we cannot do as much to protect our downside nor are we getting paid well for taking the risk. Sometime in the near future the bond market prices are going to head south and rates are going to head north. The good news is Cali is still likely to be a bloody mess when that finally happens; if your heart is really set on Cali munis.



Jack, I have really appreciated your answers to my (rather idiotic) questions. Truth is, though I have invested for years and years and years I know nothing at all about buying individual bonds.

But it seems to me -- just looking at some that are available through Vanguard -- that you could pick one with a yield that you like and a maturity date that fits your needs and then not worry about what the bond market does. Even if bonds come crashing down, wouldn't you still be ok with the bond you bought?

I can see how you would be at risk in a bond fund - or even with a bond ETF - but not with an individual bond. Is that right? Or am I completely nuts?

I've asked Vanguard to send me some literature on how to understand and buy bonds and maybe that will help me understand what some of the items are on the Vanguard page where you actually select the bond(s) you want for purchase.

Maybe I can figure this thing out.

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