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Personal Finance and Investing

golfguru

(4,987 posts)

2. Yes, some other countries are in better shape

Reply to elleng (Reply #1)

Sat Dec 31, 2011, 05:11 PM

Dec 2011

Since we North Americans buy mostly North American bonds, those are the most risk prone. The European PIIGS country bonds have even bigger risks.

Someday economy will bounce back, and interest rates will jump up. Bond price is inversely proportional to interest rates. So there is the risk of capital loss. Then again the economy could stay weak for 5 years. Time to buy LT bonds is when interest rates are at high levels.

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Why long term bonds are a bad deal at this time [View all] golfguru Dec 2011 OP

May be correct for listed countries, but there are others, right? elleng Dec 2011 #1

Yes, some other countries are in better shape golfguru Dec 2011 #2

Consulting with financial advisor, decide where to go with all this. elleng Dec 2011 #3

What it all boils down to is... golfguru Dec 2011 #4

Will likely have a widely diversified portfolio. elleng Dec 2011 #5

Do not be hasty golfguru Jan 2012 #9

Will confirm w financial advisor once funds available. Want to decide w/in 1-2 months, elleng Jan 2012 #10

Just for my curiosity, how do you pay the advisor? golfguru Jan 2012 #11

1.2%/year, payable quarterly. elleng Jan 2012 #12

Is that on the AUM or on the gain? n/t A HERETIC I AM Jan 2012 #13

AUM, I think! elleng Jan 2012 #14

"So there is the risk of capital loss" A HERETIC I AM Jan 2012 #6

aha.... golfguru Jan 2012 #7

Fair enough, but that's not "capital loss". A HERETIC I AM Jan 2012 #8

Yeah, quite frankly I'm a bit frightened when I look at something like this. OllieLotte Apr 2012 #15

Are you aware that gov't inflation numbers exclude golfguru Apr 2012 #16

Understood. When they mention the inflation they usually state that it excludes food & energy costs OllieLotte Apr 2012 #17

My current strategy.... golfguru Apr 2012 #18

Europe is getting really interesting. OllieLotte Jun 2012 #19

does Spain have more holidays than US? wordpix Jun 2012 #20

First hand experience in a Spanish university golfguru Jun 2012 #21

Keep Commenting ! Billy Patterson Aug 2012 #22