Gyroscopic Investing

Am I being naive at having a sense of peace about interest rates? Whenever people are panicking about either falling interest rates and what it do to their wealth, I don’t even think about it, knowing that my PP is built for most scenarios much better than their standard bank accounts.

When I adopted the HBPP back in 2013, one of the biggest objections I heard was "Don't buy 30 year T-bonds because interest rates have no place to go but up!' So much for following the consensus.

I also think that many investors, even some on this forum, do not have a clear grasp of the concept of bond convexity.

I thought you were going to say something about mortgage refinancing? I just checked rates today...they've nudged down a bit but not enough to be worthwhile. Will have to keep an eye on it though.

Portfolio-wise...I rebalanced in January and bought a pile of bonds that I was sure I was going to end up tax loss harvesting. Plus there's gold...anyone check their portfolio lately? If this keeps up we will be rebalancing into stocks. Deliciousness. Who's panicking???

sophie wrote: ↑Thu Mar 05, 2020 9:33 am Who's panicking???

Budd?

I too read (and thought about) all the concern on interest rates being so low when I started the PP (4 years ago now?). Yet here I am with 30% capital appreciation on my long bonds and getting 2.5-3% interest. It's worked out well.

Buying the lagging assets the past few years (largely gold and LTT) is working out favorably so far this year.