- Jul 29, 2014
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Rising rates put downward pressure on the price of long term bonds so when investors anticipate topping rates they will usually want to get into long duration bonds to capture the capital gains from what they anticpate to be dropping rates in the near future.....This happened in 2018/2019 when Trump threw a temper tantrum and Powell pivoted on his rate increases.How does EDV work? I looked it up on Yahoo, but tell me about it and why it's a good option now w/ these rates?
It's like timing the stock market or metals which usually both react the same way to falling rates. BTW there is no guarantee that this will happen sooner than later but consensus seems to be that 5.25% is about as high as the Fed dares to go.
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