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Fixed Income - ETFs v/s Funds?

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  1. #31

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    brit / aussie,

    you see, your perception of a crisis and my perception of a crisis is different.
    in your view, your crisis is about something the fed can just print money and bulldoze thru.. without factoring in the fact that the US treasury is currently one of the largest debtor in the world and their unfunded pension bill double up their debt. see examples like zimbawe.. what happens when all those printing no longer works ?

    is it going to happen anytime soon ? probably not. when is it going to happen ? i have no idea.. nobody expects lehman to go bust.. but it did..

    so under that context.. what is gold ? yes brit pointed out something right.. gold is not an investment. gold is an allocation into a different form of money.


  2. #32
    Quote Originally Posted by freeier:
    so under that context.. what is gold ? yes brit pointed out something right.. gold is not an investment. gold is an allocation into a different form of money.
    so... as more rates rises are set to come (maybe year end? maybe next year), your views on gold? will you keep buying more gold as rates rise? or are you 'investing' on some event like n. korea war?

  3. #33

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    You're right in most cases.

    But there are cases where corporate bonds are positively correlated with inflation - ie when inflation rises, so does the capital value of the bonds and yields fall.

    It gets a bit complicated but it's related to people chasing higher yield when inflation rises plus the fact that previously lower rated bonds become easier for companies to pay off with increased inflation and so become safer.

    Not that I would do it but there are some who use high yield bonds as inflation hedges.

    https://www.forbes.com/sites/greggfi.../#4a39809543d0

  4. #34

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    actually, did i say buy corporate bond ?
    i merely said that in time of crisis bond funds and equity funds are going correlated and all likely to be dumped just to satisfy margin call of leveraged positions..

    its aussie that started bringing out and insisted the differences between govvys and corporates...


  5. #35

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    jrk > like said, in a time where government can still bail out the world by promising .. it works..

    look at zimbawe.. why they can't print themselves out of trouble ?


  6. #36

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    ok a very simple question. what are the debt ratio of US compared to the rest of the world, taking account of the unfunded liabilities in pension of all the states/governments ?


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