Interesting move, dualstow. How much of your PP bonds did you sell and what percentage are you at now? And what would you do with the proceeds if you kept them in the PP?dualstow wrote:Well guys, and ladies,
I sold a bunch of my long bonds this morning at a bit above breakeven. Don't copy me, as nuanced thought did not come into play here.
If long bonds soar in price this year or next, I'll be happy about the ones I held onto. But, I don't think I would have made a significant amount of money by holding onto all of them.
It's been a nice run collecting the 3+% interest and knowing that I could hold on until I hit retirement age. And, I know that these bonds are for protection, not yield.
- Some of these bonds are due to be sold in a few years anyway, per Harry's rule. They would have had only 20 years left on them.
- Despite what I said above about protection, it bothers me that new 10-years are earning nearly as much interest as my 30's.
- If we go into a Japan-style deflationary period, I'll get through it without these instruments.
So I'll have a smaller pp. No biggie.
My PP is now in Golden Butterfly range, which would allow gold & bonds to get as low as 15%. Not there yet. I'm not motivated to do anything drastic right now because I expect the long, slow slide in long bond prices will be counterbalanced by coupon payments. I do have a slug of bonds in taxable though, and will tax-loss harvest them at some point. However, I have a monthly auto-invest into FLBIX (long treasury fund) and wondering about stopping that until the Fed is done raising rates.