Today, I'll talk about why I decided to buy American bonds.

The bond I purchased is the Vanguard U.S. Total Bond Market ETF.

Today, on SBI US stock securities, most of the stocks I own were down.

A couple of days ago, they were up, so I took profits before the decline.

However, today, even the stocks that had been rising until yesterday were slightly down.

When I searched for market themes, most were negative, but there was one that was up: the bond ETF.

Bonds seem like the only option. Recently, buying ETFs has become popular for me because their dividend yields are high (good interest rates).

As for bond characteristics:

When interest rates rise, bond prices fall.

When interest rates fall, bond prices rise.

Currently, interest rates are falling, so it's time for bond prices to rise.

Also, lately, there have been a lot of news about corporate bond issuance and chain bankruptcies.

So, I'm a bit hesitant to buy stocks.

Now, as U.S. interest rates are hitting a ceiling and falling, bond prices have rebounded from the bottom.

I guess now is the time to buy, and I'm dreaming that maybe a bond bubble is coming (haha).

If U.S. interest rates rise and bond prices fall again, I'll buy bonds once more.

Of course, I don't plan to invest long-term.

If bond prices increase, I plan to sell them.

My investment strategy is to buy stocks.

Now, I'll talk about the pros and cons of buying bonds from this point forward.

Merits

1. Stable returns

When stock markets decline, bonds can potentially become a stable source of revenue. Since bonds offer a fixed interest rate, investors can expect more stable returns.

2. Price increase

When interest rates decrease, bond prices tend to rise. Therefore, by purchasing bonds when interest rates are low, you may be able to enjoy capital gains (profits from price increases).

3. Diversification of risk

During economically unstable times, maintaining a balance between risk assets (such as stocks) and non-risk assets (such as bonds and cash) can help diversify the risks in your portfolio.

Demerits

1. Credit risk

In the case of corporate bonds or bonds with low credit ratings, the risk of default (failure to fulfill debt obligations) increases.

2. Interest rate risk

If interest rates rise sharply, bond prices may fall, and you could incur losses.

3. Currency risk:

When purchasing foreign bonds, such as U.S. bonds, you face risks associated with fluctuations in exchange rates.

It is essential to allocate assets appropriately according to the economic conditions and your risk tolerance. It is recommended to incorporate expert opinions for specific investment decisions.

Please make investment decisions based on your own responsibility and judgment.