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Personal Finance and Investing

progree

(12,092 posts)

6. And that doesn't take into account the PURCHASING POWER of the bonds, which have fallen by even more

Reply to bucolic_frolic (Reply #2)

Sun May 4, 2025, 03:13 PM

May 4

CPI: https://data.bls.gov/timeseries/CUSR0000SA0
January 2020: 259.127
March 2025: 319.086

So even if the bonds had held their nominal value, their purchasing power would have declined to 81.2% of that amount.

If a $1,000 bond lost 50% of its nominal value, its purchasing power is down to 1000 * 0.50 * 0.812 = $406.

FOUR OH SIX!

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Fertile crop of investing guru advice this weekend. [View all] bucolic_frolic May 4 OP

Bond prices have fallen by 50 percent since 2020? I have my doubts. NT mahatmakanejeeves May 4 #1

Well, ChatGPT concurs on the 50% decline. Look at the TLT chart. bucolic_frolic May 4 #2

Oh, an ETF, not the bonds themselves. mahatmakanejeeves May 4 #3

You would also know that Treasury Direct is not an open market price. It's at issue. bucolic_frolic May 4 #4

Thanks. I don't know who publishes those prices anymore, for mahatmakanejeeves May 4 #5

And that doesn't take into account the PURCHASING POWER of the bonds, which have fallen by even more progree May 4 #6

And even that is optimistic if you're buying a new car or a new roof! bucolic_frolic May 4 #7