Like stock funds and index funds, bond funds also have better trading points.
The most important factor to consider when choosing a bond fund is the macro-economy, which requires us to have a certain overall understanding of the macro-economic situation in order to better grasp the investment opportunities of bond funds.
In the economic cycle, if the overall economic situation begins to enter a downward trend and enter a recession stage, interest rates will also go out of the downward trend. When the interest rate is higher than the equilibrium interest rate, the money demand will drop and the money supply will exceed the money demand. Excess funds will use the extra money in hand to buy bonds, which will lead to an increase in bond prices. Therefore, the initial period of interest rate decline is a good time to allocate bond funds.
When the economy goes through the recession stage, enters the recovery cycle, and then continues to overheat, the rise of market interest rate will cause the bond price to fall, so it is necessary to consider taking profits in time.
At the same time, there is a seesaw effect in the stock market and the bond market, and the stock market and bonds are generally in a state of ups and downs. When the stock market enters a bear market, we can consider investing in the bond fund market, and when the stock market enters a bull market, we can consider profiting from the bond fund and investing more funds in the stock fund to obtain more income beyond the market.
Funds are varieties that value long-term returns in the future and need to be viewed from the perspective of long-term investment. However, this does not mean that we can buy without thinking at all, or sit still after buying, or we need to adjust according to market conditions and control the frequency of adjustment.