Something I don't think I've ever talked about before but I am not a fan of fixed income duration.
We have of course talked about this so often that I am sure I've lost readers for banging the same drum over and over for so many years.
The screenshot is just a nanocosm, a moment in time but it captures the unreliability of fixed income duration.
There is some yield where ten years or 20 years is adequately compensated but four point something percent isn't it. If we ever get a yield that you think does provide adequate compensation for ten years or 20 years, just buy the individual issue, don't buy the ETF.
The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.
No comments:
Post a Comment