Is now a good time to purchase I bonds given the fed rate decrease?
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wenbin l said:
I personally will say "Yes" to your question. Due to the sub-prime problem over the months, not only US consumers, but also the consumers worldwide (especially those countries who are depending significantly on importing stuff to US), have lost their confidences in the share markets. Even though the basic economic outlook (Such as employment rate and so on) are looking pretty stable at the moment, more and more economics have warned that the sub-prime problem has not reached its bottom. Given to the fact that almost half the world are involved directly or indirectly to US economics, the tension is high. Switching your fund to bond is considered as a safe measurement at the moment. I would say that this is a wise move to take.
July 10th, 2009 at 12:29 am -
Don S said:
I was recently at my favorite investment site. And I was in the Bonds section. And I learned that currently, there are tax-free municipal bonds, paying a higher interest rate than taxable bonds. It is my understanding that this is very rare, and does not occur often.
Go to : low-cost-stock-recommendations
.com
Click on the "Bonds" Button. Then click on the "Bonds Pick" Link.
It will give you more details.
Good Luck
July 10th, 2009 at 12:29 am -
Edmonton said:
I think this is not a good time to buy bonds because you will not get good interest on them. Stocks are going down too.
I would suggest buying silver and gold. If you look at the charts of silver and gold during the last 10 years, they have been going up steadily.
July 10th, 2009 at 12:29 am -
Yardbird said:
The time to buy bonds is before the feds decrease rates. Decreasing rates make bond prices go up. But the feds might well decrease interest rates more. Right now, interest rates are pretty low.
But earning 3 or 4% in bonds or a money market account is better than nothing, or losing all your money in a stock market bear market. Personally, all my money is in bonds and money market funds.
Bond prices also have some upside when everyone is selling stocks, because the stock sellers will buy bonds and drive up bond prices.
So I say "yes," it’s better to buy bonds than stocks or nothing.
But I would suggest even better is a money market account, so you can get your money out at any time if a more attractive investment opportunity arises.
July 10th, 2009 at 12:29 am -
pumpdatiron said:
No. Short term CD’s, 6 or 9 months and see what happens next. I-bonds interest rates are adjusted twice per year. November and May. Locked in til May. Check out this site for explanation.
http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm
July 10th, 2009 at 12:29 am
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