Bond Ladders

Discussion of the Bond portion of the Permanent Portfolio

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Kbg
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Bond Ladders

Post by Kbg » Sun Jan 21, 2018 9:17 am

I don’t see this discussed a lot on the board and it is a remarkably effective way to deal with rising interest rates. If one fishes around on the page there is a good description of what happens to bonds as they go through their maturity cycle. You should understand it. Of particular note check out the 1965-80 stats.

https://www.crestmontresearch.com/docs/ ... adders.pdf
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ochotona
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Re: Bond Ladders

Post by ochotona » Sun Jan 21, 2018 10:11 am

Excellent content, it reminds us not to freak out... if the duration is centered around 10 years, pretty much not to worry. And it is if you have cash (0 duration) and 20 year Treasuries.
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