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Old 10-16-2004, 10:46 AM
Ray Zee Ray Zee is offline
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Join Date: Aug 2002
Location: montana usa
Posts: 2,043
Default Re: The Best Investment?

icey, come around here more often. we need new blood.
as to bonds. when inflation goes up, interest rates go up. then the value of the bonds you own go down. so buying bonds is only good if you buy near the top of the interest rate curve. otherwise the value of the bonds is less than you paid when you go to sell them.
if you are happy with that rate and want to hold them to maturity than thats okay, knowing that you will lose money if you need to sell. also always make sure any bonds you buy will not be callable. not as much as a problem as in the past when interest rates went way up then down and the bonds got called so they didnt have to pay you the high interest rate anymore. thats like stealing from you. you get the downside but not the upside.
overall bonds are best for interest rate trading or for old people that want to lock in some fixed income to pay bills. or for big outfits trading or protecting assets or the like.
own property when inflation comes as it goes up with the rise but is harder to sell during that time, but stays higher after the fall.
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