Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Discussion of the Bond portion of the Permanent Portfolio

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catacomb
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Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by catacomb »

I know that trying to time the market is inadvisable, but in my country there are huge expectations for interest rates to rise in the coming spring.

This makes buying my country's long term fixed interest governmental bonds very unappealing. Shouldn't I just wait until interest rates go up before buying them?
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MediumTex
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by MediumTex »

I smiled broadly when I read the thread title.

I wish that timing the markets was that simple.

People have been waiting for this rise in interest rates for decades.
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by Pointedstick »

I was just recently reading a Bogleheads thread from a few years ago where people were piling on someone who bought 30-year treasuries at 5%. All of them knew that rates had nowhere to go but up.

Care to guess who wound up happier?  ;D
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by Kshartle »

I'm staying off this thread. Go all in ;)
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MediumTex
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by MediumTex »

Kshartle wrote: I'm staying off this thread. Go all in ;)
Not all in, just 25%.
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Bean
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by Bean »

MediumTex wrote:
Kshartle wrote: I'm staying off this thread. Go all in ;)
Not all in, just 25%.
That's what she said

I couldn't help it  :D
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by notsheigetz »

I do feel your pain. Back when I started out it was stocks that I was hesitant to buy because they were down and supposedly going lower. When you think about how the plan is designed however, it seems almost inevitable that at least one of the sectors will cause you to balk.
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by melveyr »

From my perspective, the Treasury market is amazing.

Some of the most intelligent people in the world are trading it. All of their forecasts are embedded into the current interest rate, which is pretty incredible when you think about it. So all of your worries are already baked into the price  :)
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by MediumTex »

With all of these anti-long term bond threads and posts, I'm having an "I did it for doodle" moment.
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by melveyr »

MediumTex wrote: With all of these anti-long term bond threads and posts, I'm having an "I did it for doodle" moment.
Haha. You going to buy some call options on TLT again? If I recall last time that worked out pretty well for you, but you did sell a little early  :P
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Re: Shouldn't I just wait until interest rates rise before purchasing LT bonds?

Post by MediumTex »

melveyr wrote:
MediumTex wrote: With all of these anti-long term bond threads and posts, I'm having an "I did it for doodle" moment.
Haha. You going to buy some call options on TLT again? If I recall last time that worked out pretty well for you, but you did sell a little early  :P
I sold after it doubled, but if I had held on it would have been a 10-bagger.
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