Most
“experts” automatically tell you to avoid bonds when there’s a
threat of inflation.
They
are wrong because they never get into the whole story, owing to
ignorance or indifference. That whole story involves discussion of duration principles and how long the bonds are to be held.
Paradoxically,
inflation could be an opportunity for potential purchases of low-cost
bond mutual funds, or ETFs, with low duration, and with dividends
that are periodically reinvested.
I
have commented a good deal about bonds and inflation in the past and
will in the future. (See the Earl J. Weinreb NewsHole® comments and
@BusinessNewshole tweets.)
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