highlighted section is a buy high, sell low strategy.But you have to make that move before interest rates go up or you take a loss on the bonds to sell them.Here's how I think about it. I am retired with most of my invested assets in retirement accounts. When interest rates rose, I transferred money from my bond index funds to MM funds because the MM interest rates were higher than the yields on the bond funds. Once MM rates (about 4.25% now) drop below my bond fund yields (about 3.8% now), then I will move cash from the MM back to bond funds. I'm probably over-simplifying, but this approach makes sense to me.
Also BND is still yielding 4.42% SEC 30 day yield now. But bonds are measured by yield to maturity rather than distribution yield, so bond funds and MM are an apples and oranges thing.
When interest rates went up, I was buying bonds with dividends from my equity assets.
Statistics: Posted by jebmke — Sat Dec 07, 2024 9:55 am
