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Old 08-09-2018, 04:39 AM   #21
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I have seen the monthly dividends per share in my main bond fund drop from 5 cents to 3 cents, a serious drop. I have been able to buy more shares over the years to offset some of that drop, but I would still welcome some increase in the DPS, even back to 4 cents per share.


I also wouldn't mind the DPS drop if my dang health insurance premiums weren't rising 15-20% per year, making it now my biggest expense.
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Old 08-09-2018, 04:47 AM   #22
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Rising rates are generally better for better for lenders and worse for borrowers. The Federal Reserve sees higher rates as heading off excess inflation by moderating business activity.
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Old 08-09-2018, 11:55 AM   #23
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Originally Posted by UnrealizedPotential View Post
For home buyers it's bad news
But isn't it possible that if the average 30 year fixed went from 4.50% to 6.50%
(still fairly low historically) home prices 'could' drop enough to make it a 'wash' or maybe even a gain for the buyer ?
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Old 08-09-2018, 12:45 PM   #24
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I'm fine with rising rates... that is as soon as I lock in my 30-year mortgage here in a few days. Then they can do what they want. I'd appreciate a safer haven for short-term cash yielding a little bit more, even if inflation goes up. Rising inflation - within reason - can help a number of economic indicators.


I think people on this board are generally favorable to this because most aren't looking to borrow or running adjustable rate debt.
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Old 08-09-2018, 01:06 PM   #25
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I hate rising rates, makes my bonds go down.

Oh well they are there just so that I don't have all my dough in stocks -
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Old 08-11-2018, 06:44 PM   #26
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But isn't it possible that if the average 30 year fixed went from 4.50% to 6.50%
(still fairly low historically) home prices 'could' drop enough to make it a 'wash' or maybe even a gain for the buyer ?
I would say that it is iffy at best. In the New York City or San Francisco or possibly Los Angeles housing markets I doubt that home prices would come down enough to help much. In other markets there is more of a chance, but less of an advantage because the prices are lower from a starting point.

But is it possible? Of course. But the question to me is how likely is it? How much of an advantage would there be if home prices did come down significantly?


Unfortunately in markets where it would help the most, IMO it would be the least likely to happen. Also, one has to consider that home owners may be less likely to sell in a down market.
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Old 08-11-2018, 07:52 PM   #27
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that double digit interest income is liable to come with an increasing tax obligation .. that might be unpleasant for some
I'll take my chances.

Reminds me of when I got my first company car. An S Class Mercedes. Someone told me "yeah, but watch out; you're going to have to pay taxes on that lease payment! It counts as income."

I replied: "So, I get to drive an $80,000 car but I have to pay an extra $2500 in taxes? Oh....ok".
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