We look to be entering a period of declining interest rates, with the Fed moving rates lower gradually. In this kind of an environment would bond funds be a better investment than one time purchases of individual bonds?
Funds make it easier to invest. Individual bonds give you the ability to tailor to the maturity dates you want and the yield you want. If you want to invest more time & energy learning, individual bonds get you a bit better performance and better alignment with your income needs.
Easier? Yes! Easy? Probably not.. the market has been wrong on the timing for 2 years. With record revisions on economic data, it’s increasingly difficult to accurately predict anything. The part that is certain is which way bond prices go as rates change and what your payments will be when you collect. That’s it. I’ve been trying to “outsmart” the Fed for a while. I’m not losing, but I’m not “winning” yet. I’ll need a full basis point in a year to declare victory. I’m starting to wonder if it’s going to be a draw. J Powell is putting up a hell of a fight!
I need to learn more on this area.....I'm definitely lacking badly here.
Bonds are easier to learn in my opinion
We look to be entering a period of declining interest rates, with the Fed moving rates lower gradually. In this kind of an environment would bond funds be a better investment than one time purchases of individual bonds?
Funds make it easier to invest. Individual bonds give you the ability to tailor to the maturity dates you want and the yield you want. If you want to invest more time & energy learning, individual bonds get you a bit better performance and better alignment with your income needs.
Easier to time Bonds and Real Estate , no one knows what stocks will do !
Agreed
Easier? Yes! Easy? Probably not.. the market has been wrong on the timing for 2 years.
With record revisions on economic data, it’s increasingly difficult to accurately predict anything.
The part that is certain is which way bond prices go as rates change and what your payments will be when you collect. That’s it.
I’ve been trying to “outsmart” the Fed for a while. I’m not losing, but I’m not “winning” yet. I’ll need a full basis point in a year to declare victory. I’m starting to wonder if it’s going to be a draw. J Powell is putting up a hell of a fight!
@@iangantner6976 Good points