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Best time to buy Bonds?

Discussion in 'Investing Strategies' started by Johny_come_lately, 28th Mar, 2010.

  1. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi,

    I have cash just sitting, waiting to purchase Australian Bonds. I know the bond price goes down as the interest rate goes up. I imagine that interest will rise.

    The question is: when to buy? My cash fund is equalling inflation. How high and when will rates rise? Would the cost of waiting to buy, equal the gains of waiting? :confused:not sure:confused:



    Johny.
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Johny,

    Most people see bonds as a defensive investment and do not try to make capital gains from these investment instruments.

    The opposite is usually true and happened late '08 early '09 when interest rates dropped quickly.

    Cheers,

    Dan
     
  3. Tropo

    Tropo Well-Known Member

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    17th Aug, 2005
    Posts:
    3,396
    Location:
    NSW
  4. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    You are a champion, Tropo.:cool:




    Thanks, Johny.