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  • Bond Investment

    I am halfway through "the bond book" and loosing interest in Bonds pretty fast. Did this happened to anyone? The market of Bonds is far more complex than the market of stocks and not so "safe"(except for treasuries). I have extremely small amount of portfolio invested in Index Bond mutual fund anyway.

  • #2




    I am halfway through “the bond book” and loosing interest in Bonds pretty fast. Did this happened to anyone? The market of Bonds is far more complex than the market of stocks and not so “safe”(except for treasuries). I have extremely small amount of portfolio invested in Index Bond mutual fund anyway.
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    Bonds are complex, and arguably are one of the types of assets that dont make for great wrapping in a passive ETF due to these complexities. A more active mutual fund may be a better structure here. At least this is what smart people argue about, I dont know really besides they are definitely more complex a market.

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    • #3
      The really smart one ladder their bonds themselves....but that's way beyond me.

      We've done some direct Cali Bonds purchases for on the occasional windfall cashflow that we didn't plan for and really had no situation to stash near term so in some went that route..... Better than ee bonds we argued.

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      • #4
        I own a lot of bonds at this point.  I have total bond in tax protected and munis in taxable.  I own both funds and individual bonds.  Bonds bore me so I agree reading an entire book would be boring......Bonds drop in bear markets also. A bad year for bonds is -5%. A bad year for stocks is -40%.

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        • #5




          reading an entire book would be boring.
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          Very.

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          • #6
            Bonds are actually easier to value hence why they are boring to read about. Equities on the other hand are more complex, so everyone can speculate about their value without knowing what they are talking about. Speculation is more fun than doing mathematical analysis as it turns out :P

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            • #7




              Bonds are actually easier to value hence why they are boring to read about. Equities on the other hand are more complex, so everyone can speculate about their value without knowing what they are talking about. Speculation is more fun than doing mathematical analysis as it turns out
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              Yes, play the slots is a lot more fun than putting quarters into the vending machine and getting a steady reliable reward from it.   Variable reward/loss promotes enhanced attention and energy, right?

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              • #8
                I found myself in the same situation with The Bond Book. It’s currently sitting on my bookshelf with a torn piece of paper bookmark sticking out about 1/2 way through; it’s been like that for about 1.5 yrs now ????. It got into too many concepts and details that were extremely low yield for me at the time and probably will be for the rest of my life. Instead I bought and read “why bother with bonds” which was short and very high yield. If you haven’t already, I recommend you read that next.

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