MarkGillCPA

Is Buying Bonds Really a Good Idea?

Agree - Treasuries are in a bubble and due for a fall. An easy way to go short treasuries is to buy the TBT (Ultrashort Lehman 20+ Treasury Bond ETF).

However, high quality corporate bonds may be one of the best buying opportunities seen in years (or decades). Yields are high, and yield spreads to treasuries are at all time highs. The easy way to play this is to buy Vanguard's Intermediate Term Investment Grade Fund (VFICX), yielding over 6%. If your willing to take on a little more risk, I like Loomis Sayles Bond (LSBRX) yielding almost 10%.

As corporate bonds recover in value, there a good opportunity to make solid capital gains on these funds.