I only hold bond ETFs in my RRSP, and I already made my contribution a couple months ago but yes I did buy XBB then. If I was doing my contribution today, I would absolutely buy it.Are you adding new money at the minute? I'm talking XBB, VAB etc. My theory is stick with it. Keep the asset allocation as per my original plan.
I am short duration. And have been for some time. That said I do not recommend people play this way unless they have the time and inclination. A diversified low cost passive portfolio with a sound asset allocation that one actually follows, rebalances back to is proven to work in the long run.Good people of Cmf. Let's talk bond funds.
Are you adding new money at the minute? I'm talking XBB, VAB etc. My theory is stick with it. Keep the asset allocation as per my original plan.
I'm interested in the views out there.
Sure if you have a specific purchase at a specific time, like an upcoming house buy, then maybe bonds aren't for you. But if it's just nebulous future need for "investing", "rebalancing" or "buying opportunities" then probably bonds will be better in the end, most of the time. They certainly haven't been recently, though.I'd rather just hold cash. Bond yield may be slightly better, but comes with less liquidity. If I decide to buy a house and need the money but my bonds are worth less, that would suck.
It's pretty hard to set a specific time for a house purchase nowadays. You are pretty much a hostage to the market, unless you have a very high income. I've been saving for 9 years now and just hoping for the right opportunity. Otherwise, I'll just keep plenty of cash as dry powder while putting the rest in equities/crypto for some growth. Bonds are for people who have reached a stable position in life.Sure if you have a specific purchase at a specific time, like an upcoming house buy, then maybe bonds aren't for you. But if it's just nebulous future need for "investing", "rebalancing" or "buying opportunities" then probably bonds will be better in the end, most of the time. They certainly haven't been recently, though.
I swear, people on this site would argue the sky is green. You are a credible person and I'm sure there is something to your narrative but it simply does not reflect my reality.Actually BBB rated (at least anything rated under A) corporate bonds in particular were the reason for the March 2020 crash in bond ETFs and for some period in March 2020, one could not buy or sell a corporate bond. Nothing showed on bond inventory at at least some discount brokerages for many days during that period.
Well they are bond ETFs with some BBB corporate exposure. Those are higher risk bonds, and that risk showed up in March 2020.XBB is a mix of government and corporate bonds, a good portion of them BBB corporate bonds that you can up up yourself . XBB had huge spreads during March 2020 because many of the corporate bonds couldn't be priced and ETF providers like Blackrock were challenged to find appropriate NAVs each trading day. Bottom line: XBB and counterparts like VAB and ZAG, are not the bond ETFs most thought them to be.
I stopped reading after this. No need.Not sure what your points are in your last 2 posts? NWH.DB.G is not a bond...
Congratulations on the exquisitely timed trade.My junk bonds and debentures sold like Russian/Ukrainian translation dictionaries in Kyiv during the COVID correction.
My NWH.DB.G sold for $108.50 on March 2, 2020. That is an 8.5% premium, plus I got the prorated interest. I seem to recall NWH.DB.G was tagged with a 3B rating, as were the other debentures and bonds I held, at the time. That's why I correctly called them junk.
That morning, I also sold another series of debentures and some bonds.
Thank you. It was luck. I have absolutely no ability to trade and make money. My gut is a moron.Congratulations on the exquisitely timed trade.
I suppose the markets starting to crash on March 9 is a point of view but Yahoo and I were there at the time and we see it a bit differently.Your junk bonds and debentures sold richly just before the Covid correction, not during.
Check out a chart for XHB. The week of March 2, 2020, was the absolute peak. The following Monday (March 9, 2020) is when markets began to crash. By March 20, XHB was down 25% and -- as @AltaRed said -- most of the bond market was no-bid.