2Yr·

$N/A (+0.12%) The still very young, active bond-interest portfolio "FixedIncomeOne" by Dr. Andreas Beck looks good for the short term (1-3 years) as an overnight supplement, and contains many short-dated bonds.

Does this make it suitable as an investment reserve in a self-assembled/reconstructed GlobalPortfolioOne ?

.. Because in the GPO, A. Beck just last week re-bought bonds (return to normal "Regime A"), but with an average of 10 years maturity !

Which bond maturity is optimal now in the current market phase (with expected falling interest rates in 2024) ?

14 Comments

Stuttgarter81@Moneymoney

2Yr

If you speculate on interest rate cuts, then of course long-dated ones, since they offer the possibility of price gains in addition to the coupon. ...but of course it can be that interest rates only fall at the short end and not at the long end. If you just want to park your money - then definitely only short term. If you have a certain interest rate expectation, then you can speculate accordingly with longer-dated bonds.

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Epi@Epi

2Yr

I would be cautious with long-dated bonds. Speculation can easily backfire if Germany or other countries are downgraded because of the interest rate hikes and the recession. I think it is quite likely that Germany will lose its AAA rating in the foreseeable future given its current economic policy. Even if no one really has that on their radar yet.

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