Txdigest.com

For anyone that owns bond funds (not individual bonds)..this is a good time to check on the "duration" of those funds.

Doing it a year ago would have been even better, but since the Fed is raising interest rates, and probably will be for another year at least and probably longer..the fund value will most likely continue to drop..the amount of drop being directly tied to the "duration" of the fund.

It might be a good thing to read about and discuss with whoever is in charge of doing the investing at your house.

In that case let's include ETFs, they trade like a stock unlike mutual funds, and you can get diversification or sector specific what ever suits your fancy.

John in Plano wrote:In that case let's include ETFs, they trade like a stock unlike mutual funds, and you can get diversification or sector specific what ever suits your fancy.

I prefer ETFs as well.

Bob Of Burleson wrote:Allow me to recommend mutual funds. You can get packages to include just about anything you can dream up.

Yes, it’s just that “duration” is something I was unfamiliar with until just a few years ago.

It’s something very much worth learning about,

In the world of investing..”duration” has a meaning you’d have to read about to understand.

I just found this at the Vanguard website.

https://investor.vanguard.com/insights/ ... s-duration

"To estimate how a change in interest rates can affect the share price of a bond fund, multiply the fund's duration by the change in rates. If a fund's average duration is 2.5 years, a 1-percentage-point rise in interest rates would lead to an estimated 2.5% decline in the share price. A 1-percentage-point decline in rates would cause an estimated 2.5% rise in the share price."

In case you haven't noticed..I like talking about money and personal finance.

I REALLY like talking about money and personal finance.

I was raised to not talk about money. I've come to understand that is because of the differences in my parents families.
Pops extended family owned companies, they started businesses some failed some really successful. They invested in the future.
Mom's family worked for others, except for the moonshiners back in Kentucky.

I don’t know how people would ever learn about money if nobody talked about it.

In the 4th grade I was reading the Wall Street Journal and other publications and papers. Still read a fair amount.