Using today's low interest rate as an example, if the interest rate is hiked, the old bonds lose value esp. the long-term bonds. Hence, the low-interest bonds today (again particularly the long-term bonds) are risky. For me and me only, I buy long-term bonds when interest rate is 8% (higher or lower is defined by you) or higher.
Using China as an example, when the USD appreciates (as in today) and the loan is in USD, China would win as the payback in USD today is worth more in buying power than before (or comparatively to Chinese currency). The country should appreciate its currency but in reality all want to depreciate it to boost export.
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Hi Tony,
ReplyDeleteSorry to bother you here, can you explain the difference of these two books:
One is , and the other is , they seems have the same price and content, but one is 100 pages less then the other one, so whats the difference here, and which one is recommended.
Thanks and sorry for my bad English
Two books are Sector Rotation: 3rd Edition and The Art of Investing: Sector Rotation
DeleteHi Leeds, No trouble. I prefer the Sector Rotation: 3rd Rotation with more pages. The Art is part of Complete Art of Investing and hence taking out the stock research part for top-down investing strategy, one of 8 (or 9 from my memory) strategies for sector rotation. If it does not answer, please write again. Tony
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