ok I feel stupid asking this,but here goes

[moneymaker]

Yep that’s kinda what I was afraid of if the stock market tanks and interest rates go up most of us are screwed. Louise Yamada is covering this right now on Bloomberg. Many people may be investing in long term bonds to get the better rates, when in fact they should probably be looking at shorter term bonds.

[clearfund]

If you believe rates will be rising and we are in a Treasuries bubble (which I believe) since we are at historically low rates/high values then one option is to buy a Short US TBill ETF fund or an Ultra Short TBill ETF.

You will get a very correlated inverse return and thus will make money as rates rise. Go for the ETF versions (just google short tbill etf) as the fees are minimal and liquidity is high.

When rates spike north of some high number buy the Tbills in your IRA and just hold them. My attorney used his retirment to buy bonds when rates were 18% or so and all his partners laughed at him…well he collected 18% interest and then cash in big when rates dropped later.

Alternatively with my IRA funds I’ve started buying 1st Trust Deeds earning 7%-14% depending. Keeping leverage sub 70% I view it as an option to buy at 30% off today’s value that pays me apx 10% in the meantime.

[clearfund]

If you believe rates will be rising and we are in a Treasuries bubble (which I believe) since we are at historically low rates/high values then one option is to buy a Short US TBill ETF fund or an Ultra Short TBill ETF.

You will get a very correlated inverse return and thus will make money as rates rise. Go for the ETF versions (just google short tbill etf) as the fees are minimal and liquidity is high.

When rates spike north of some high number buy the Tbills in your IRA and just hold them. My attorney used his retirment to buy bonds when rates were 18% or so and all his partners laughed at him…well he collected 18% interest and then cash in big when rates dropped later.

Alternatively with my IRA funds I’ve started buying 1st Trust Deeds earning 7%-14% depending. Keeping leverage sub 70% I view it as an option to buy at 30% off today’s value that pays me apx 10% in the meantime.

[clearfund]

If you believe rates will be rising and we are in a Treasuries bubble (which I believe) since we are at historically low rates/high values then one option is to buy a Short US TBill ETF fund or an Ultra Short TBill ETF.

You will get a very correlated inverse return and thus will make money as rates rise. Go for the ETF versions (just google short tbill etf) as the fees are minimal and liquidity is high.

When rates spike north of some high number buy the Tbills in your IRA and just hold them. My attorney used his retirment to buy bonds when rates were 18% or so and all his partners laughed at him…well he collected 18% interest and then cash in big when rates dropped later.

Alternatively with my IRA funds I’ve started buying 1st Trust Deeds earning 7%-14% depending. Keeping leverage sub 70% I view it as an option to buy at 30% off today’s value that pays me apx 10% in the meantime.

[clearfund]

If you believe rates will be rising and we are in a Treasuries bubble (which I believe) since we are at historically low rates/high values then one option is to buy a Short US TBill ETF fund or an Ultra Short TBill ETF.

You will get a very correlated inverse return and thus will make money as rates rise. Go for the ETF versions (just google short tbill etf) as the fees are minimal and liquidity is high.

When rates spike north of some high number buy the Tbills in your IRA and just hold them. My attorney used his retirment to buy bonds when rates were 18% or so and all his partners laughed at him…well he collected 18% interest and then cash in big when rates dropped later.

Alternatively with my IRA funds I’ve started buying 1st Trust Deeds earning 7%-14% depending. Keeping leverage sub 70% I view it as an option to buy at 30% off today’s value that pays me apx 10% in the meantime.

[clearfund]

If you believe rates will be rising and we are in a Treasuries bubble (which I believe) since we are at historically low rates/high values then one option is to buy a Short US TBill ETF fund or an Ultra Short TBill ETF.

You will get a very correlated inverse return and thus will make money as rates rise. Go for the ETF versions (just google short tbill etf) as the fees are minimal and liquidity is high.

When rates spike north of some high number buy the Tbills in your IRA and just hold them. My attorney used his retirment to buy bonds when rates were 18% or so and all his partners laughed at him…well he collected 18% interest and then cash in big when rates dropped later.

Alternatively with my IRA funds I’ve started buying 1st Trust Deeds earning 7%-14% depending. Keeping leverage sub 70% I view it as an option to buy at 30% off today’s value that pays me apx 10% in the meantime.

[Eugene]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

In essence, by buying a 10-year bond you get a promise of a 35% return over 10 years and you’re hedged from both upward and downward fluctuations in yields for that period of time.

[Eugene]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

In essence, by buying a 10-year bond you get a promise of a 35% return over 10 years and you’re hedged from both upward and downward fluctuations in yields for that period of time.

[Eugene]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

In essence, by buying a 10-year bond you get a promise of a 35% return over 10 years and you’re hedged from both upward and downward fluctuations in yields for that period of time.

[Eugene]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

In essence, by buying a 10-year bond you get a promise of a 35% return over 10 years and you’re hedged from both upward and downward fluctuations in yields for that period of time.

[Eugene]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

In essence, by buying a 10-year bond you get a promise of a 35% return over 10 years and you’re hedged from both upward and downward fluctuations in yields for that period of time.

[ucodegen]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.

[ucodegen]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.

[ucodegen]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.

[ucodegen]

Just so there is no misunderstanding – if you buy a $1000 10-year bond @ 3.5% and hold it to maturity, you will collect $350 in interest over 10 years and then you’ll get your $1000 back, and it does not matter in the slightest what happens to 10-year rates.

Furthermore, if you buy a 10-year bond now and then sell it 5 years from now, and invest the proceeds into a 5-year bond at whatever the interest rate is in 2015, by 2020 you will still have $1350, give or take a few dollars.

First paragraph is correct, but the second paragraph isnt. The selling price has to be ‘discounted’ by the difference between the bonds yield and current risk free rate of return.

[Author]

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