Q: Trying to build a long term bonds piece to my portfolio. Currently own small positions with ZFL and XLB. What addition add to or new buys should I make to continue adding to bonds?
After the FED's announcement what if bonds go up a lot? What if they go down a lot? Does that make a difference? Would you be a contrarian at this point? Please explain your position. Take as many credits as you see fit.
Thank you
Yves
After the FED's announcement what if bonds go up a lot? What if they go down a lot? Does that make a difference? Would you be a contrarian at this point? Please explain your position. Take as many credits as you see fit.
Thank you
Yves
5i Research Answer:
Bonds prices would likely see some volatility, and if the Fed's actions are not in the expected range, the volatility can be higher. We don't prefer making short-term calls on announcements. Generally, with peak interest rates soon upon us, we think bonds are poised to do better.