Comments on: Chart of the day, bond-fund edition http://blogs.reuters.com/felix-salmon/2013/08/21/chart-of-the-day-bond-fund-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traducere daneza http://blogs.reuters.com/felix-salmon/2013/08/21/chart-of-the-day-bond-fund-edition/comment-page-1/#comment-53490 Mon, 29 Sep 2014 13:56:21 +0000 http://blogs.reuters.com/felix-salmon/?p=22356#comment-53490 I would like to point out my passion for your kind-heartedness supporting men who really want guidance on this one matter. Your very own commitment to getting the message around had become extraordinarily beneficial and have in most cases helped women like me to get to their ambitions. Your own invaluable instruction signifies much to me and substantially more to my fellow workers. Many thanks; from all of us.

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By: TFF http://blogs.reuters.com/felix-salmon/2013/08/21/chart-of-the-day-bond-fund-edition/comment-page-1/#comment-47892 Fri, 23 Aug 2013 05:23:14 +0000 http://blogs.reuters.com/felix-salmon/?p=22356#comment-47892 Yes, total return would be more meaningful.

And I don’t know many individual investors who worry about the distinction between losing 8.6% and losing 7.8% in a single hypothetical scenario. Either way, a significant rise in interest rates would cost a year or more of return.

I’ve been building cash since the start of the year, as bond funds simply aren’t tempting yet. I’ve earned just a few pennies of interest, but that is still better than if I had held bonds over that period. When I am confident that five-year returns will be positive, I’ll consider bonds again.

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By: realist50 http://blogs.reuters.com/felix-salmon/2013/08/21/chart-of-the-day-bond-fund-edition/comment-page-1/#comment-47882 Thu, 22 Aug 2013 21:11:00 +0000 http://blogs.reuters.com/felix-salmon/?p=22356#comment-47882 I agree with nedofbaker.

“In fact, even the relationship between rising interest rates and bond fund prices is pretty opaque.” I don’t understand this statement. Yes, the underlying arithmetic is rather tedious. Bond funds, however, report average duration. A duration of 5 years means that the fund value drops about 5% for a 1% increase in interest rates. That is the definition of what duration means. I looked up duration for a bond fund that I own, and it took less than 5 minutes to do so.

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By: nedofbaker http://blogs.reuters.com/felix-salmon/2013/08/21/chart-of-the-day-bond-fund-edition/comment-page-1/#comment-47880 Thu, 22 Aug 2013 17:35:15 +0000 http://blogs.reuters.com/felix-salmon/?p=22356#comment-47880 Most bond fund returns come from coupon payments (dividends). So a discussion of bond fund returns that ignores dividend reinvestment is sorely lacking. You can model the return of a theoretical long term bond fund investor during the bond bear market of 1950-1980 and see that their returns exceeded T-bills. A low bar maybe, but not the bond blood bath everyone is predicting.

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