Goldtent TA Paradise

Can you imagine this?

1. Fullgoldcrown says:

   July 22, 2020 - 7:42 pm at 7:42 pm

   Yes many of us were “there”

   18% rates in the late 70s and early 80s.

   If you had money …you didn’t have to take risks…just buy stripped bonds and collect 15% plus for 30 years

   Compounding was amazing .

2. LibertyPathfinder says:

   July 22, 2020 - 8:36 pm at 8:36 pm

   Are you saying you bought a stripped bond, just the yield component coupon as it is cheaper than having the face value attached? What would the price differential be to leverage the coupon income stream as opposed to the whole bond?

   Very impressive return @ 15%

   • Fullgoldcrown says:

     July 22, 2020 - 9:08 pm at 9:08 pm

     Yes !

     In the early 80s or so I had some savings.

     I took it to an Investment Advisor at a company called Merill Lynch and he suggested stripped cupons

     So I didn’t own the bond just the Interest on it.

     30 years of coupons at about 15% per year compounded.

     I never actually understood it but it worked…

     After about maybe 10 years …I got bored and thought I could make more money in the futures market and in stocks so I sold them all.

     I also do not understand what market there was for them …but this was a very popular financial instrument back then.

     If I had held them until maturity around 2012 …well lets just say I would have been exponentially better off.

     True story

     https://www.investopedia.com/ask/answers/what-is-a-stripped-bond/

     • LibertyPathfinder says:

       July 22, 2020 - 9:59 pm at 9:59 pm

       I am not sure what you mean by compounded? You just got from say $1000 face, $150 per year cheque? Or did it compound in some way?

       Thanks FGC, interesting story. Yeah bonds beyond the basics are a bit of a mystery to me.

       • Fullgoldcrown says:

         July 23, 2020 - 9:02 am at 9:02 am

         I think I left the money at the brokerage and they bought more coupons albeit at lower interest going forward.

         Not sure .

         • LibertyPathfinder says:

           July 23, 2020 - 10:37 am at 10:37 am

           Thanks for that, makes sense Mr early Hodler.

3. Patrick says:

   July 23, 2020 - 7:50 am at 7:50 am

   Captivating.