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| Barrons - Get Out Now! |
| 2009-01-07 |
| Posted by:Anonymoose |
| #2 I remember in 1981/2 you could buy US 30 year stripped bonds for 6c on the dollar. Inflation was about 15% at the time. Were that to happen today, long bonds would lose 80%+ of their value. |
| Posted by: phil_b 2009-01-07 23:32 |
| #1 We discussed this in a finance class a few weeks ago. Default risk isn't what you should be worried about with treasuries or AA/AAA bonds, its interest rate and inflation risk. Interest rate risk could discount the living daylights out of your bonds and you will be looking at >20% loss. That would suck. |
| Posted by: bigjim-ky 2009-01-07 23:20 |