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How to Earn a 30% Return on Your Bonds
In order for something to go up 30 bond points, you have to decrease rates by 4%. Four times eight is 32. Do you think that 10 year rates are going to go from 4% all the way back down to half a percent? No, not in your lifetime. I mean, it's possible, but not in one year. So that's the only way you could get a 30% return this year in bonds. Not going to happen people. What is a bond? Again, it is that contract price today for the next 10 years. That is what a bond is. If you pull forward nine of the years because you cash in that 3.85% coupon for a