If the time to wait for the general price level to fall, so a couple of percent coupon activobank r

In bonds, ie bondeihin, placement, short course can be simplified as follows: Bond value and the market move in opposite directions. If you believe in falling market interest rates in the future, you may want to invest in today bondiin in order to benefit from falling interest rates on the market in relation to the high coupon rates or, alternatively, to sell the Bond to another investor at the same time offsetting the increased value of the profits for themselves. Similarly, the general level of interest rates rises, Bond's value decreases, because the market is likely to be available for the same issuer bondeja where the coupon rate is higher. In general, the longer the bond with a maturity, the more sensitive it reacts activobank to changes in market. Long-term bondeilla is therefore generally higher duration.
The question is, why invest in long-term bondeihin during a time when the general level of interest rates is almost zero? Take the example of the USA's 10-year government activobank bonds, the proceeds of which moves the time of writing this blog for about 2.6 per cent. If the US's inflation rate the central bank to restore the Fed's 2 per cent target activobank goals, this would mean that the real rate of the world's best creditworthiness of the issuer to have a long-term loan is less than one percent (exchange rate changes are not taken into account). I think this is very low, given the US's fiscal situation (risk ratings downgrade), and the risk that inflation may actually next ten years to rise above the Fed is aiming to achieve two per cent threshold. In addition, it is entirely possible that the Fed's "tapering" will go wrong at some point and interest rates rise more strongly than expected. U.S. government debt is not the case in my opinion, to speak only of "risk-free output". Instead, "Otto's Chemical Risk 'is beginning to be on this day a better term. Europe, long-term government bonds in nominal interest rates are still at a lower level, accompanied by fears of deflation. Even the Greek state should not at this time a 10-year loan of about six per cent.
I think that today there are only two valid reasons to consider the long-term government bond buying: 1) a possible deflationary 2) the safe-haven effect, that is, the risk is realized capital seeking refuge from government loans, raising their price.
If the time to wait for the general price level to fall, so a couple of percent coupon activobank rate with high credit activobank rating to have paid by the state would be quite tolerable rate of return. But in fact, I do not believe in long-term deflation yes, I do, then no. I consider it unlikely that the central banks would allow it to happen. Central bankers of the world thinking well illustrated by the former head of the Fed's Ben Bernanke's statement activobank deflation related to:
"But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), activobank That Allows it to produce as many U.S. dollars as it wishes at no cost Essentially. By Increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can Also Reduce the value of a dollar in terms of goods and services, Which is equivalent to raising the prices in dollars of Princess goods and Services. We CONCLUDE That, under a paper-money system, a Determined government can always generate higher spending and hence positive inflation. "
Although Bernanke is no longer a captain of a ship, then in all probability, his followers and colleagues around the world, including the ECB, Mario "whatever it takes" to Draghi, think the same way. So I would go to invest in long-term government bonds in the hope of deflation.
A haven for thinking could be a good argument activobank if you believe the stock market correction. On the other hand safe havens can only be considered the best credit rating of issuers. The panic in the event you want, for example, the differences between good and bad government yields are likely to rise. In fact, I find, however, short-term government bonds, long-term preference for a safe haven, as their value changes are not nearly as sensitive to general activobank changes in interest rates. Thus, they are clearly of low-risk than long-term government bonds. However, short-term government bonds to accept that the performance is not at the moment even enough to cover inflation. Short-term government bonds, however, can be a viable option for large bank deposits, especially if you happen to live in southern European countries, where many banks are currently as dead zombies and deposits may not be completely free of risk in these banks.
Then you invest in high-risk corporate bonds? Bondeissa hedge interest rate differentials, that is, the spreads, is emphasized. Roughly speaking, when investors' optimism is high, the interest rate differential -low government loan and hedge corporate bond coupon interest rate is low. While the panic is on, the interest rate differentials revähtävät