Care to say anything about bond trends??
MM,
I tried to play the Market in many ways. I am more into Stocks and Option Trading than in Bond and there are many different typss of bonds. However, in spite of that, Most of my portfolio is invested into one type of bond, A Treasury Strip, which is a bond that the longer the term to muturity sells at a deep discount.
ie: most bonds have a face value of $1,000 when one purchases them and is paid a fixed rate of interest
until the bond Matures. Once they mature, they are called in and the Bond holder gets his $1,000 back.
With Strips, let's say that you buy one Maturing in 15 years, since the bond pays no interest,
( the interest is striped fron it ) it sells at a discount.
When I started to buy these Strips, I was buying the 15 year bond for close to $ 600 and when they
matured , I recived the full call price of $ 1,000. The Strips were then selling at a very deep discount !
Now when, I look at the 15 year bond, If I purchase one , I must now pay close to $750 for it,
so my bond portfolio has done quite well. However, I don't know if I want to tie up my money for a much
lower return than I used to get on these bonds, so I am sitting on my cash for now.
Sorry to ramble, but in short , Bond trends will move up or down depending on interest rates, so bonds are selling at very high premiums over their face values because of negative interest rates. Just like
Stocks, they had a great Bull Market, but if interest rates rise , bond prices will fall. That is about all I know about Bonds.