I've been thinking for some time that corporate bond funds make a lot of sense when the market is down this far from it's highs. While the market churns up and down with every Obama policy change corporate bonds just keep paying dividends - unless, of course, if they go belly-up. If the state of the economy really isn't as bad as we are being told then corporate bonds are a steal at today's prices. If things are really worse - well I don't even want to think about it.
I'm curious what other Freepers think about the bond market in general and where the best investments are to be found.
>> I’ve been thinking for some time that corporate bond funds make a lot of sense when the market is down this far from it’s highs.
I am in cash, and I regularly think about the more abstract question “what do you do with cash right now”.
I have considered corporate bonds — very carefully chosen ones.
What always makes me pull back is the fear of inflation looming on the horizon.
Many see Jimmy Carter or worse stagflation soon.
20 percent inflation, etc.
Buying long term bonds, treasuries ...at current rates may look to be a very expensive trade in a few years.
( not investment advice , just my personal opinion )