Corporate Bonds vs. Government Bonds (Treasury Bonds) - The Showdown

[@theretirementguide]

Still great relevant information. Thanks.

[@OptimizedPortfolio]

Thanks, George!

[@klittlet005]

Good info. I didn't consider how my total bond mkt fund doesn't give the diversity I thought I had

[@OptimizedPortfolio]

Thanks for watching!

[@harikrishnanchandramohan4209]

@Optimized portfolio. Do you prefer having consumer staple bluechips over S&p500 as it less volatile, higher dividends and also pretty stable. And is 60/40 better than 50/50 portfolio?

[@OptimizedPortfolio]

Consumer staples are just one sector and thus wouldn't be sufficient as a core holding. Optimal allocation can only be known in hindsight.

[@WeAllWeGot333]

Depends on what your investment goals are

[@GeoffMaxwell]

exellent info . thankyou

[@OptimizedPortfolio]

Thanks for watching!

[@varishdwivedi1271]

Hi Thanks for the info..very detailed..Will I able to sell long term bonds before maturity?? Or money is blocked till maturity??

[@OptimizedPortfolio]

Thanks! You can sell anytime.

[@lifehope4603]

Where is the best place to buy Intelsat corporate bonds?

[@OptimizedPortfolio]

Unsure

[@genesioban86]

THANK YOU

[@OptimizedPortfolio]

Thanks for watching!

[@hafsasuleiman9724]

Thank you honestly it’s my fault I’m going to translate this in digestible English

[@OptimizedPortfolio]

No prob

[@StockSpotlightPodcast]

Fantastic video

[@OptimizedPortfolio]

Thanks!

[@petejames1326]

@@OptimizedPortfolio hi im thinking of buying VCIT the vanguard intermediate term corporate bond etf, is that one good for long term buy and hold investing? if the FED raise % rates the value of the bond will fall correct? but if that happens is it a good idea to buy more? thanks

[@OptimizedPortfolio]

@@petejames1326 As always, depends on one's goal(s), time horizon, risk tolerance, and what else is in the portfolio. I also can't provide personalized advice. As I noted in this video, all else equal, I don't like corporate bonds.

[@news2383]

Because the treasury yield is so low it's basically worthless

[@OptimizedPortfolio]

Definitely not "worthless." You're talking about bonds as an investment in isolation, which would obviously be a poor choice. Instead, think about them in the context of the larger portfolio as a whole. Bonds still offer the lowest correlation to stocks of any asset, meaning they're still the best diversifier to hold alongside stocks. Interest rates are likely to stay low for a while. Also, there’s no reason to expect interest rates to rise just because they are low. They have gradually declined for the last 700 years without reversion to the mean: papers.ssrn.com/sol3/papers.cfm?abstract_id=3485734 Arguably more importantly, there's no reason to fear bonds at low, zero, or even negative rates as long as your avg. bond maturity is slightly less than your time horizon, over which a bond should return its par value plus interest. Moreover, bond convexity means the asymmetry of bond risk/return favors the upside: www.optimizedportfolio.com/60-40-portfolio/#bond-behavior-with-low-zero-negative-or-rising-interest-rates I acknowledge that post-Volcker monetary policy, resulting in falling interest rates, has driven the particularly stellar returns of the raging bond bull market since 1982, but I also think the Fed and U.S. monetary policy are fundamentally different since the Volcker era, likely allowing us to altogether avoid hyperinflationary environments like the late 1970’s going forward.

[@WhatIsThis-zq4hk]

@@OptimizedPortfolio This didn't age well. To be fair, it was a perfectly reasonable thing to say 3 years ago, but it just goes to show that predicting the future is extremely hard.