Why in the world would you own bonds?

Re:Why in the world would you own bonds? by tchvil on Wednesday March 17, 2021 @11:38AM (#26492692)

Say you confidently bought the roaring Eurostox 600 in March 2000. You saw it coming back to its value in July 2007. Then reach 1% gain in March 2015. And a 7% gain in Feb 2020.

Buying S&P, or the Apple, Amazon and Tesla ones is another story. Looking at the average can be misleading.

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Re:Why in the world would you own bonds? by thatfrenchguy on Wednesday March 17, 2021 @12:03PM (#26493029)

You’re not counting dividends here.

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Re:Why in the world would you own bonds? by tchvil on Wednesday March 17, 2021 @12:52PM (#26493754)

Thanks for the note. This change indeed the result. https://www.justetf.com/en/etf-profile.html?isin=DE000263530...

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Re:Why in the world would you own bonds? by wait_a_minute on Wednesday March 17, 2021 @11:45AM (#26492787)

This is why I dollar cost average. Timing purchases is impossible for me since I’m not a finance genius, so I just buy stock each time I get paid.

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Re:Why in the world would you own bonds? by sneeze-slayer on Wednesday March 17, 2021 @11:59AM (#26492979)

FYI that's just closer to periodically investing. Dollar Cost averaging is more along the lines of "I already have $100 in my account and will invest $10/month for 10 months."

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Re:Why in the world would you own bonds? by jsight on Wednesday March 17, 2021 @12:15PM (#26493199)

Planning to DCA from future cashflows is still DCA.

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Re:Why in the world would you own bonds? by loco5niner on Wednesday March 17, 2021 @06:35PM (#26497628)

According to Investopedia: "A perfect example of dollar cost averaging is its use in 401(k) plans...an employee can select a pre-determined amount of their salary..."

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