What domestic fixed income ETF’s would you recommend and is now the right time to be looking at bond type investments?
A: I can’t get excited about investing in long term bonds at the moment and am very reluctant to suggest a fixed income ETF.
If you want to lock your money away, have a look at some of the bank term deposit rates. To quote two examples – ING Direct is offering 3.0% for 12 months, the Commonwealth Bank is paying 3.2% for 3 years.
Charlie Aitken’s article presented a pretty gloomy outlook for bonds (https://switzersuperreport.com.au/the-bonds-bubble-is-bursting/), and while I don’t see this happening that quickly, I can’t see the risk/reward trade of investing in long term fixed interest.
