Bond Investing Master Class - How to Invest in Fixed Income
Money For the Rest of Us
00:00
Why Should You Own Longer-Term Bonds?
If you believe interest rates should fall in the future that is as the Federal Reserve if they start reducing their policy rate and as inflation comes down that could lead longer-term interest rates to fall further. You might own longer-term bond so you can profit from the price appreciation as interest rates fall now it isn't an easy decision it really depends on your view in why you own bonds. The last time I own long-term treasuries was in the 2010 period so it's been over a decade and there we could buy a long-term bond and get a yield close to 5% and yields on cash for much less than that but then interest rates fell I captured the price
Transcript
Play full episode
