Why in the world would you own bonds?
bridgewater.com
Why in the world would you own bonds?
1–10 of 532 posts
Re: Why in the world would you own bonds?
#2As a hedge against inflection and higher interest rates.
Oh, wait, I thought the title was “Why would you short bonds”
Re: Why in the world would you own bonds?
#3Clicked the "X". Article looked a lot like the homepage.
I'm not sure I can recall an EULA on an analysis article.
View Source bypasses the EULA directly.
Re: Why in the world would you own bonds?
#4Clicked the "X". Article looked a lot like the homepage. I'm not sure I can recall an EULA on an analysis article. View Source bypasses the EULA directly.
I did the same. You have to accept it instead of clicking "X" to see the article.
Re: Why in the world would you own bonds?
#5FDIC insurance maxes out at $250,000, so it won't cover you if you're super rich or a foreign government. In that case bonds still make sense. US bonds are currently more stable and have better interest rates than any other bonds from developed countries, so people will continue buying them for the time being.
Re: Why in the world would you own bonds?
#6Clicked the "X". Article looked a lot like the homepage. I'm not sure I can recall an EULA on an analysis article. View Source bypasses the EULA directly.
>I'm not sure I can recall an EULA on an analysis article.
Seems to be common on websites for asset management companies. If you go to vanguard or blackrock's site you get one too.
Re: Why in the world would you own bonds?
#7FDIC insurance maxes out at $250,000, so it won't cover you if you're super rich or a foreign government. In that case bonds still make sense. US bonds are currently more stable and have better interest rates than any other bonds from developed countries, so people will continue buying them for the time being.
The wealthy generally keep a very small fraction of their holdings in cash, also you can have accounts with multiple banks.
Re: Why in the world would you own bonds?
#8What i find particularly scary is the run on the banks scenario the author outlines. this really smashes the idea that bonds are the safe thing to get your money back.
I know a lot of bonds have been selling, that's why the fed needs to buy so much every month, to make up for all that selling people are doing. Personally, i'm surprised even more people haven't been selling bonds.
With the threat of inflation looming so large, and the enormous money supply that has increased in the last year. All those country's debt problems for which the only solution is inflation: it's the only thing that's politically feasible.
I'm a totally risk averse investor and as such, I avoid cash and bonds like the plague with the exception of a modest emergency cash reserves.
Of course this is all linked to the rise of all the other assets classes. when the 100 trillion dollar bond markets sell off, all that money has to go somewhere: equities, real estate, gold and now bitcoin.
Re: Why in the world would you own bonds?
#9It's possible for bond rates to go negative. Just because rates are near zero now doesn't mean there isn't room for further movement.
Re: Why in the world would you own bonds?
#10“Nobody wants bonds because the yields are too low” is basically the same statement as “nobody goes to that restaurant because it’s too crowded.”