[quote=SD Realtor]What is the ideal economic situation do you make money on a buying bonds?
Conditions similar to 1980-1984.[/quote]
So from what I recall, 1970’s was a period of high inflation. And early 80ies was a period of falling interest rates…
So with that, aren’t we in a period right now with falling rates (albeit artificially created), and does that at least partly explain why bonds have been doing pretty well in their returns since the price of bonds have been increasing?
And if so, if one expect rates in the near-mid future to start to rise aggressively and continue to rise, wouldn’t that make bonds a really really really bad investment in the coming years?
I keep seeing people say that with rising interest rates, the RE market property value is gonna fall…We’ve been through periods of high inflation and high interest rates in the past…Have we seen huge corrections in RE as a result of rising interest rates (minus the liar loan/bubble periods)?
It seems like there are so many variables when it comes to property, and the value is less correlated to rising interest rates, historically speaking…
On the other hand it seems like there is much higher correlation between rising interest rates and bonds, and that bonds will get slaughtered during a period of increasing interest rates…
