tag:blogger.com,1999:blog-1527840491496268397.post4128149485802279768..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Trouble With The Curve?Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527840491496268397.post-77076584170056852912014-12-19T18:01:49.464-07:002014-12-19T18:01:49.464-07:00For what it is worth, here is my problem with the ...For what it is worth, here is my problem with the 5-year yield.<br /><br />If long-term interest rates continue to fall over the long-term (a high risk if the long-term trend and interest rates elsewhere are any indications), then it is best to lock in rates as far out as is possible.<br /><br />I'm speaking as a buy and hold to maturity (bond ladder) saver of course.<br /><br />Put another way, I wouldn't want to load up on the 5-year treasury, be right over the next 5 years (as rates fell), and then be stuck trying to reinvest the cash I made into treasuries with very low yields at that point.<br /><br />That said, I have a large long-term bond maturing in January of 2016. For cash flow purposes, I intend to invest that money in a 5-year treasury (since I will need the money in 5 years).<br /><br />I am not optimistic that I will be getting a good yield at that point. I therefore really hope I am wrong about Yellen's ability to raise interest rates.<br /><br />Bond ladders are funny that way. I always root for higher interest rates. Always. And yet, each individual bond goes up in price any time interest rates fall. Does me absolutely no good though, since I hold bonds to maturity. Go figure.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.com