BONDS ……INDIVIDUAL AND BOND FUNDS
Hi Terry
Heard you on the radio today. Thanks for taking time to help the rest of us.
Regarding Bonds……
This is for my 401K retirement plan. My age is 60.
Bond funds have been destroyed these past 2 years as you know – as yields have gone way up. Now that the Fed is holding rates (likely) and will likely lower rates starting 2024, is this a good time to invest in “bond funds”…..??
I do have some investments in individual Treasury Bonds and Bills (currently paying about 5%), but is this a good time to get back into bond funds?
The only offering for bonds I have in my 401K is for “bond funds” such as Vanguard VBTLX which is a mixture of bonds – but mostly Treasury bonds.
thanks.
Terry Says
You’re asking me if interest rates have peaked. I have no idea. There is a multi-trillion dollar bond market trading every day debating that issue. Bond buyers think this is a good time to buy because rates will fall. Bond sellers get out of their bonds because they think rates could rise farther and don’t want to be “stuck” with low-yielding bonds!!
Only in hindsight will we know who was right.
