4D·

Interest Rates 📉

I share with you a new purchase I made through Trade Republic, long term bonds give better yields than the current interest bearing accounts and I can benefit from a drop in interest rates.

It is a small amount but I prefer to have most of it in money market funds to be able to rotate the capital to equities in case of a crisis or a rise in interest rates.

28.01

ITALY, REPUBLIC OF (GOVERNMENT) 4.5% 23/53

Bought x€334.00 at 105.06%

€350.90

5 Comments

Frank@BlueVelvet

Not such a bad idea to hedge your portfolio with bonds ;-)

•

Alfredo Arcos Alegría@Alfre2

@BlueVelvet Thank you :)

••

Stevoo@Stevoo13

Bonds with a long maturity date like that mean rates could get higher at some point

•

Alfredo Arcos Alegría@Alfre2

@Stevoo13 that's right but I could sell whenever I want, so it’s also mean that if the interest rates go down the price of the bond is more likely to go higher cause it has long maturity as you said and also the opposite (if the interest rates go up) but in that case I wouldn’t sell it’s still a good interest rate 4.28% so I wouldn’t be disappointed 🤷‍♂️

If the interest rates goes up I will be more afraid of the stock market 📉 💀

•

Stevoo@Stevoo13

@Alfre2 I’m with you man…looking for some bonds myself to lock in the rates (shorter maturity though)

•