BUYING BONDS NOW
I want buy a 30 yr bond now with the interest rate in the upper 4’s. lets say the fed makes several cuts in the interest rate. Am I correct in thinking that if the interest rate on bonds goes down, the value of it increases. So If I sell it in the future I will get a higher price for it while I am still getting the interest payments. As long as the interest rate is below the rate I bought it I can sell at a higher price. Is my thought process correct?
Terry Says
I have written several columns over the years, describing how bond prices go UP when interest rates go down. And bond prices can be very volatile –equally as volatile as stocks.
Read this: https://www.terrysavage.com/beware-of-bonds-3/
