Bonds — when is it safe to get back in?
Will you update your email subscribers when you feel it is safe to buy investment grade bonds again?
Terry Says
I’m not a market timer. I’m just watching the economy. Some bonds that are currently “investment grade” will be downgraded when they can’t pay their interest, or it appears that they might not be able to pay. Think of airlines, energy companies, retailers, etc. When a company’s credit is downgraded then the price of their bonds sinks –and if you own bonds in a bond fund, then the share price of the fund will fall.
I don’t have a crystal ball — but when I warned three weeks ago,many investors weren’t thinking of this risk in their bond portfolios!
