Comments on: Government Bonds and investment opportunities

By: LinkStuff For Feb 20

LinkStuff For Feb 20 — Wed, 15 Jul 2009 15:46:53 +0000

[...] Financial Blogger talks about Government Bonds and Investment Opportunities. [...]

By: Frank

Frank — Mon, 23 Feb 2009 13:25:39 +0000

True. And I still believe that we haven’t reached the bottom yet.

By: The Financial Blogger

The Financial Blogger — Sat, 21 Feb 2009 20:45:34 +0000

Frank,

I would also add that if you take another 10 years period, you will probably show better result as 2008 was quite exceptional.

By: Frank

Frank — Sat, 21 Feb 2009 18:18:36 +0000

Wanna add, from an article in the Money Magazine (feb 09) I found the following data:
annualized returns for 10Y period: Equities -0.9% Bonds 5.28%.
annualized returns for 30Y period: Equities 11.1% Bonds 8.5%.
Sources: S&P , Barclays capital US aggregate bond index

That’s obvious, over the long term period, equities outperform bonds.

By: IS

IS — Fri, 20 Feb 2009 01:26:51 +0000

oh and we should also mention that they are NOT 100% guaranteed… countries have defeaulted, so have municipalities even in such regions as California…

By: The Canadian Tax Blogger

The Canadian Tax Blogger — Thu, 19 Feb 2009 20:31:55 +0000

Remember inflation? If we assume a realistic” annualized inflation rate of 3%, your “investment” would buy the same amount of goods as they do right now. So really you get nothing.

By: Ray

Ray — Thu, 19 Feb 2009 17:32:10 +0000

ones you take inflation into account your return will be only about 1% find good corporate bonds yielding well over 7% some almost just as save as the government.