Re:Why in the world would you own bonds?
by anonymoushn on Wednesday March 17, 2021 @04:47AM
(#26488106)
I've recently entered the space and I find that I cannot talk my book, because some trades get better when other people follow you into them and some trades get a lot worse when that happens.
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To give an obvious example:
I am invested on margin. That is for every dollar I own, my broker lends me two, so I can buy stock for three.
It's in my interest to keep interest rates low. So I want other people to invest in bonds long, rather than buy on margin (ie sort-of invest in bonds short).
Of course, my influence is so small that it doesn't really make a difference.
But I can imagine there are much smaller markets, where your voice can make a difference.