I can't repeat it enough: lower bond prices lead to higher returns and higher income for bond investors. Let's look at two excellent places to do just that. This means it's offering us a limited-time sale, and we best act to maximize our income per dollar - also known as yield. Furthermore, reinvesting in a down market rapidly boosts our income as each dollar now produces more dollars than it did even a few months ago. As an income investor, we may be matching the market's price movements but we get paid a much better rate to wait. As the ocean's waves move all boats, so does the market most portfolios. When I get a private message asking me what someone should do who is down 20% this year, I always try to remind them that so is the rest of the market. The market also offers its own sales at times, like we are seeing now. Sailors must be ever on the lookout for rogue waves that move opposite the others and threaten to capsize even the largest of vessels. Yet sailors and mariners know that the open ocean is far from calm and flat. Sure a storm kicks up the waves now and again, but overall it looks "flat as a pancake". From the shore, the ocean often looks flat and calm. ![]() If an item is always 10% off, there really isn't a sale - that's just its new price. Sales naturally work as a reason or motivation to drive shoppers into action. It's why stores have rolling sales in different departments and for different seasons. You have a short amount of time to make a decision, because indecision may result in you having to pay more in the end. Do you know what the best part of a sale is? Its limited duration.
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