Q: Regarding Bonds,
I just wanted to clarify if I got this concept right. With interest rates increasing and a few more planned increases over the next year..The bond prices decrease as the yield increases..So if one can predict with some certainty the expected increase in rates will stop..is that the only time when bond purchases are beneficial?
Brookfield, and Berkshire have purchased solid assets at bargain prices over time. I own full positions in both of these but for a longterm would you consider these as a replacement to fixed investement allocation. If you agree I would double the positions to 10% each. Thanks for your insight.
Shyam
I just wanted to clarify if I got this concept right. With interest rates increasing and a few more planned increases over the next year..The bond prices decrease as the yield increases..So if one can predict with some certainty the expected increase in rates will stop..is that the only time when bond purchases are beneficial?
Brookfield, and Berkshire have purchased solid assets at bargain prices over time. I own full positions in both of these but for a longterm would you consider these as a replacement to fixed investement allocation. If you agree I would double the positions to 10% each. Thanks for your insight.
Shyam