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Are Government Treasury Bonds a good investment at this time in history? |
Why or why not and when would you get in and when do you get out? Terrible investment. The interest is not keeping up with inflation and when inflation heat up due to the rate cuts, then there will have to be interest rate increases and the price of bonds will drop like rocks. Best time to invest in government bonds is when interest rates are about 12-16% as during 1980. Wow the returns were fantastic especially on the strips. I agree with the above guy but it won't let me vote cause i'm not a level 2 :) |
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I am not exactly certain what you mean by "premium". If you are using the term to refer to bonds selling at a premium to their redemption value, you need to be very careful about invest... Yes its a good way to invest a few thousand - Although their are better areas it is not good to put all your eggs in one basket. ...The 10yr Bond rate was expected to fall to under or near 4.00%. Of course, just a couple of weeks ago that didn't seem possible. The Federal Reserve was also supposed to cut rates on money too... right now they are the safest thing out there besides a federally insured savings account. I also kinda like the idea of putting funds in a european bank and converting the funds to Euros. Like th... The answer to your question depends on a couple of factors, such as your age now and how much risk your willing to accept. In turn one would need to know where you want to be "financially"... it's lending money to government or corporate, low risk. bonds to local government is call municipal bonds, all interest you earn are tax free, both federal and state, but you have to pay a fe... Very safe, They pay low interest, but the interest usually isnot subject to fed income tax. because of that, they are attractive to those in high tax brackets. ...With bonds, there is an inverse relationship between the price and the interest rate. When the price is low, the interest rate is high and vice versa. So, during times of higher interest rates, yo... |
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