iShares Barclays 1-3 Year Treasury Bond Message Board
-
Why is this going up?
Another first post. I am trying to diversify my portfolio and at the same time make it more conservative. I do not understand why SHY has been going up since July 2007, and I do not know what events are likely to predict or cause a downturn. Will someone please contribute to my education? Thank you.
-
Look at Investors Business daily article: Low-Risk ETFs Provide Shelter In The Storm
Tuesday February 26, by
Joanne Von Alroth
Might help clear it up.- 1 Reply to joeschulenberg
-
Thank you very much for your help.
-
Sure, this isn't a bad place to park your money. I might get in soon. As interest rates go down, treasury prices go up. If you remember treausuries used to pay 5% now they are down to about 3.5%, this pushes up the price of the treasury. In a recession, people look for safe havens to place money, as mone people buy treauries, the yield goes down and prices go up because demand goes up. The last recession in 2000-2002 treauries averaged about 10% a year. I think this is a good place to get 6-7% over the next 12 months.
- 4 Replies to slurpyboy4
-
well said .
-
i've been trading bonds for a decade now , do not buy shy right now . Short term t's have little upside and lot's of down side right ! This is the fund you buy in a bull- market ! Not a bear - the trade is done . Wait till price comes down .
-
"If you remember treausuries used to pay 5% now they are down to about 3.5%, this pushes up the price of the treasury."
It's actually the other way around. As bond prices rise the interest rate goes down. Bonds trade like stocks. More people buying drives the price up. -
Thank you very much. I appreciate your information and assistance.
-