What a bond price "crash" means for investors

[@SoCal209]

Excellent summary.

[@tahirisaid2693]

The current market crash is proof that 99% of People had no Idea what they were doing. People Bought anything, made money and became overnight gurus with stocks, options, NFT’S, cryptos etc. Nothing is 100% certain in any market, only thing you can control is your risk.

[@johnybravo5667]

When you say QE push down the price and push up the yield, do you mean the existing bonds or newly issued?

[@percevalzinzin5983]

Allow me to give my thoughts here: that applies to both existing and newly issued bonds. Bonds, whether old or new, work the same way: you buy a capital (i.e. you lend money) and your get a return (i.e. a coupon).

[@960john]

Hi Tim! What about if you've got lots of money in some active EM bond funds. Those funds lost 30% of their value AND they're also very expensive, costing 2% a year? What would you do? Would you dump them because they're crap, costly, and you don't like them in the first place, or you hold 'em, hoping for a recover over many years? (I'd like to help my mother who got stuck in this trap). I hope you can help me make a decision.

[@percevalzinzin5983]

Thanks for being so articulate on a topic from which the media excessively sell fear. It makes sense that if the price of a product drops, be it a bond, share or toilet paper, then it is an opportunity to buy it

[@avoidmysnipes7541]

Except this crash will be worse than 2008

[@peterburke8650]

Just hold gold.

[@MM-kq8gc]

Excellent video.... sheds some light on why my inflation linked GILT bonds have fallen by 13%.... though I am still confused how an inflation linked bond wold drop soo much.... regardless of whether they are based on CPI/RPI etc surely they are like gold dust and the price should hold

[@maltesetony9030]

Reassuring. I think.