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/biz/ - Business & Finance

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15036339 No.15036339 [Reply] [Original]

What is the point of bonds? You get less than 2% interest, which doesn't even match the inflation rate. You're effectively losing money. Why not just buy index funds or a REIT instead?

>> No.15036353

>>15036339
law says you have to buy x% for security reason.

>> No.15036354

bonds are backed by theft, and big nose clan needs bonds in order to duplicate your bank account then buy things with it for the good of everyone you included

>> No.15036397
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15036397

>> No.15036444

>>15036397
cringe and democracypilled

>> No.15036458
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15036458

>>15036339
So bonds are kind of like stocks that people buy them and expect the price to go up. The thing is, no one says "omg my $1000 bond is now worth $1,100, to the moon!", they say "bond yields have declined .3% since I bought in, to the moon!". So when bonds moon, yield goes down, like 2%. But it's actually much worse than that. Central banks print money from nothing, and buy bonds with it. This drives the price up and yields down. This has happened so much, that 15% of the world's government debt has NEGATIVE INTEREST RATES. Yes, if you loan money to Switzerland (or a number of various countries), you will literally pay them for the privilege. This isn't an exaggeration, conspiracy or fake news. You give them $1000 and in 10 years they give you $990. Why would anyone do this? Because they expect that in a year or two, the yield will go down even further and you will be getting $950, meaning they profited of of the capital gain. The genius central bankers all over the world think this is normal and good. Thanks for reading my blog post.

>> No.15036705

Or buy gold and silver idiot and actually protect your wealth before it all implodes in a dollar crisis

>> No.15036712

>>15036458
Exactly. Buy
gold

>> No.15036741

Well, in america there isn't much reason, but in third world countries you can profit a lot more from bonds, at a higher risk of course. In Brazil you can get more than 10%/year.

>> No.15036763

>>15036397
Lol measuring inflation in breadloafs is literally what they do in Iran in order to say "we have no inflation i promise". Meanwhile the price of living is upp hundreds of %, mostly from real estate.

>> No.15036780

You can get bonds to match any risk profile. Yes you can take on bonds that are altcoin PnD-like in their riskiness.

>> No.15036805

>>15036339
>what's the point?
Liquidity

>> No.15036821

>>15036339
pension funds by LAW and mandated to buy them

>> No.15036839

Negative yield bonds are a sign of a coming financial crisis that will make 1929 look like a cakewalk. It will take decades to recover, because the problem won't be fixed until we get rid of crony-capitalism.

>> No.15036841

>>15036397
yikers

>> No.15036890

>>15036839
>crony-capitalism

>> No.15036931

>>15036458
>You give them $1000 and in 10 years they give you $990. Why would anyone do this? Because they expect that in a year or two, the yield will go down even further and you will be getting $950, meaning they profited of of the capital gain
oof, you actually kind of get some of the technicalities right but veer right into crazy town at the end. you're not even using the right 'capital gain' correctly by any definition of the word.
if bonds are so bad then stop buying them and do something else with the money, like loan it to a business. which is exactly the stated purpose of the whole scheme you're describing.

>> No.15036937

>>15036339
Aside the fed Jew involvement:

Bonds don't drop in value unlike stocks during market crashes. Because of that it's usually suggested that you keep a small share of your investments there so you can liquedate assets during one if you need to without having to take a loss. It is usually considered just inflation protected money (usually they rise in value about the same as they fall due to inflation)

However, in the case of hyperinflation bonds are fucked since they are tied to currency, but your stocks aren't.

>> No.15036965

>>15036890
Yes, also known as corrupt capitalism, or the collusion of government and private industry to hinder competition for their own benefit.

>> No.15037013
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15037013

Blue chip dividends > bonds desu.

>> No.15037499

>>15036741
>In Brazil you can get more than 10%/year.
You deserve to lose all your $ if you invest in a literal shithole.

>At least 57 prisoners were killed by other inmates during clashes between organized crime groups in the Altamira prison in northern Brazil Monday with 16 of the victims being decapitated, according to prison officials.

>> No.15037706

>>15037499
Brazil is a very large country. Plenty of good people also. In the north it is full of blacks, which is why crime is so high, but in the south there are a lot of whites, so it resembles a first world country. Anyway, there's also plenty of cheap land for agriculture and lack of capital. This means you can buy a lot of land and have a high ROI there.