Someone who invested in a long term treasury fund (average duration ~20 years) 9 years ago (in Aug 2015) and reinvested dividends currently has very nearly broken even (still has their original investment). If 10 years ago (Aug 2014), they have a positive nominal rate of return.If you hold a long fund for 9 years, and then see 3% in rate hikes over the next couple years, you will be sitting on a big loss despite having held the fund longer than the duration.
Statistics: Posted by Beensabu — Sun Sep 01, 2024 3:42 pm — Replies 39 — Views 2888
