----- Original Message ----- "Eugene Coyle" <[email protected]> wrote:
I've wondered about bond funds. They seem to be some sort of income averaging device, with little chance for capital gains, and with considerable risk for a bad outcome. Why not just buy a bond directly? Any bond market comments? Greece is a good example of a bond market crash. If we look at corporate bonds they have various interest rates and various risks of not paying interest or return of bond price. So it makes sense to diversify through the use of bond funds. In the US government and corporate bonds are very low priced. Probably the crises around the world have caused the 30% ownership of US government bonds and when those crises are eliminated next year US government bonds won't be so attractive and interest rates will rise regardless of what the Feds do in the way of quantitative easing. -- Ron
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