4) What are
your thoughts on bond yields?
Not exact matches
Thirdly, I
think a reasonably diversified stock /
bond portfolio can also provide a solid ~ 2.5 - 3.5 % blended
yield quite easily, depending
on asset mix and growth profile.
A rise of 1 - 2 % isn't going to do much, and I don't
think we'll rise by more than 1 - 2 %
on the 10 - year
bond yield anyway, so nobody needs to panic.
Highly rated companies that are financially strong and have massive amounts of cash
on their balance sheets —
think Microsoft, Exxon, etc. — can typically offer
bonds with lower
yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).
, but I
think it's a mistake for risk averse or diversified investors to completely give up
on high quality
bonds because they're worried about poor returns from low
yields.
I
thought it was interesting that
on September 5 — the day after the announcement — two - year government
bonds in Germany, Denmark, Belgium, Netherlands, Finland, France, Austria and Ireland all had negative
yields.
Think about it: how much will a
bond with a NEGATIVE
yield be worth
on the day that investors lose confidence in their central bankers» abilities to control the weather financial markets?
They might
think they're well diversified even if they own just five Canadian stocks, or they may choose a
bond based solely
on its
yield, without considering the risk.
With
yields on bonds and CDs so low as to almost be insulting, investors are finding themselves searching for income in places they might normally have never
thought to look.
I
think it was somewhere around a 15 %
yield on a 1 - yr GoC T - Bill, but I believe that the 10 - yr long
bond was trading way down at an 8 %
yield.
I
think it's a mistake to hang your equity bullishness
on the flawed Fed model, comparing
bond yields to stocks.
I expect that we'll be inclined to increase our exposure in long - term
bonds on any substantial price weakness and upward
yield pressure, but that inclination will be gradual and proportionate - I don't
think it's useful to
think of any particular level
on say the 10 - year or the 30 - year Treasury as a «buy.»
I ask because before reading all the great links you have provided i always
thought of
bonds as safe but rather boring as i believed one was always limited to the profit
on the
yields.
Some market participants do
think that
bond yields will inevitably rise but
on the opposite side of the trade are investors who
think bond yields are not going anywhere.
Luke @ Learn
Bonds writes My Thoughts On High Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the
Bonds writes My
Thoughts On High
Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the
Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the
Bonds — High
yield bonds have been referred to as «junk bonds,» but that is not the
yield bonds have been referred to as «junk bonds,» but that is not the
bonds have been referred to as «junk
bonds,» but that is not the
bonds,» but that is not the case.
Rather, I
think people who live
on fixed - income assets like CDs and
bonds are shifting to the safest kind of equities (utilities) driving up the price and thus driving down the
yield.