Given the ongoing increase in interest rates, the value of bonds will come down. SO, is it time now to invest in bonds?
closed as primarily opinion-based by Chris W. Rea, Pete B., Brythan, Dheer, Peter Cooper Jr. Mar 30 '18 at 18:20
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People get this wrong over and over.
If you but a 30 year bond today (3% yield), and rates go to 5%, your bond will be worth 70% of what you paid for it, and your payments will be 60% of what someone buys the 5% bond at later.
You can't sell your bond when rates go to 5% and come out ahead: the reduction in value exactly offsets the benefit.
|Once you buy a 30 year, low-yield bond, you own the results for 30 years.