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Started By
Message
I bought 20y zero Treasuries in retirement account
Posted on 12/6/23 at 11:50 am
Posted on 12/6/23 at 11:50 am
I figured let me lock in guaranteed 5% for fixed income portion of portfolio.
If we rapidly decline in rates next 2 years at what point (% gain) would you consider taking profit and deploying back into stock.
I guess does it become an asset allocation question at that point?
If we rapidly decline in rates next 2 years at what point (% gain) would you consider taking profit and deploying back into stock.
I guess does it become an asset allocation question at that point?
2
Posted on 12/6/23 at 12:17 pm to thelawnwranglers
It depends on your forward rate expectations. There's a huge difference in capital gains on a 5% move to 3% versus 5% to -3%. You should think about that and use a convexity calculator to find a target.
Posted on 12/6/23 at 12:53 pm to wutangfinancial
quote:
wutangfinancial
It depends on your forward rate expectations. There's a huge difference in capital gains on a 5% move to 3% versus 5% to -3%. You should think about that and use a convexity calculator to find a target.
Retirement so no capital gains
Will look up convexity calculator
Posted on 12/6/23 at 3:22 pm to thelawnwranglers
quote:
Retirement so no capital gains
I meant the bonds appreciation in value not taxes. You can probably get a nice 20-30% if something bad happens.
Posted on 12/6/23 at 3:51 pm to thelawnwranglers
Every day I realize how little I know about the breadth of financial options
Posted on 12/6/23 at 4:03 pm to Thundercles
Same here. Spent some time googling that convexity calculator.
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