How's the bond market?

casa_mugrienta

Duke status
Apr 13, 2008
43,693
18,203
113
Petak Island
1 When?
2 For what?
3 Wager?
1. Dunno. Sometime after the Fed can't hike rakes anymore because the economy is pushed near the brink and we revert to QE and stimmy and inflation continues. That would be the logical guess.

2. Commodities, as usual, following the previous historical patterns of failure here in the USA and elsewhere.

3. No need. As posted above, there's already murmurs about it.
 

R3W

Phil Edwards status
Feb 19, 2002
6,864
32
48
Frisco
If you're holding typically weighted portfolios right now you're definitely losing money, likely at nearly double the rate of inflation or worse. Your money is actually better in a savings account.

If the bond market goes stocks are gonna follow.
We’ve been in a bond bear market since last year. In fact it’s the first time that both the stock market and bond market have fallen together since maybe the 40’s. Thing about bonds/bond yields is that they tend to move in a generational way. The bond bear market that started in 1946 lasted until 1981.

Personally, I’m starting to look at short term bond/CD ladders as a place to park some cash. Pick them up cheap and average 2.5% for 18 months - 2 years. YMMV but this would cover short term goals of ours.