Is this a good time to buy bond market ETFs?
Title is my question. Guys I am a new grad and started earning recently. Ive been reading few books on personal finance and investing. So far Ive been putting good chunk of money high yield savings (emergency funds). Other fraction of it I have invested in a bunch of ETFs. I thought the interest rates being at their peak, this is a good time to buy Bond Market ETF. I believe feds won’t increase the interest rates and hence when they start cutting the rates my bond values will go up. Someone who had better financial literally please educate me on this. #stocks #investments #ETF #vanguard
New grad should go risky. Super risky
Always go option trading when you are young
You are doing the right thing. Save up to $300k in conservative savings. Then you take risk in equities. With so much uncertainties take balanced risks. It’s quite stressful and sometimes affect your day job as well.
Go for ETFs like QQQ for your age. Only advice I will give you is never invest in one or two individual stocks without extreme knowledge on the stock no matter how much hype there is or you get some good returns in short term. If you can control this urge and stick with ETFs you will succeed. Remember compounding is super powerful
Your investment thesis is sound. That said, you are young. Go with equities. You have time on your side and they will do better in the long run.
This. I wouldn't touch bonds at all.
From what I understand, bonds are good if you want to reduce volatility in your portfolio for a given date. Common case is retiring or saving up for a big purchase like a house. Given that you likely won't be liquidating your portfolio soon, you can get higher returns with smart investing (read diversification) on equities