Bonds

bondsThe premise of bonds is simple: you invest your money to an entity and, after a set period of time, that money matures and can be collected for more than what you invested. Some of the more popular bonds are government bonds, which have been used in the past to fund wars, public utilities, and various federal and state projects.

The main caveat to bonds is their limited returns and the possibility of that yield barely even surpassing inflation. However, the security of bonds is priceless. Bonds are all but sure things and even if the issuer goes bankrupt, bond holders (lenders) are the first to be paid out. Bonds have their place in any portfolio, as they provide lockdown stability and even some growth.

Recent Articles

Just How Safe are Bonds Today?

News flash: Investors who assumed their investments in conservative bonds and bond funds were safe from losses are learning otherwise... More 

Diversification: Why the Whole Is Greater Than The Sum Of The Parts

There is an old saying on Wall Street that if you aren't worried about something in your portfolio, then you aren't diversified enough.... More 

iShares Barclays 20+ Yr Treas. Bond (ETF) (TLT) Is at a Major Crossroads

The August jobs report will put the iShares 20+ Year Treasury Bond ETF (TLT) in play. Bonds now face a critical juncture. More 

Fixed-Income Coupons, You Taste So Good!

Pardon the title, but coupon-like total returns really do taste good to me and many other fixed-income investors. That’s because last year’s market returns were so bad — in stocks, bonds, and alternatives. 2015’s total return for an equal-weighted, diversified mix of assets was the worst since 1974, excluding the great financial crisis. Bonds were... More 

Don’t Dump Bond Funds Because of Rising Rates

A look at the last three times the Fed raised rates shows that bond funds recover quickly and can even do very well for patient investors. More 

Pimco’s BOND ETF Has an Edge

As the Fed prepares to raise rates, investors are terrified of bonds. With funds like Pimco's BOND ETF, they shouldn't be. More 

2 Charts That Explain the Recent Volatility

U.S. interest rates and the euro help illustrate the reasoning behind this action. More 

Forget the Fed: 6 Reasons to Hold on to Your Bond Funds

Just because bond yields are low doesn't mean that they have to rise. Six reasons why high-quality bonds remain a safe investment. More 

Trade of the Day: iShares Barclays 7-10 Year Treasury Bond Fund (IEF)

A misplaced fear of inflation has driven stocks and bonds down and pushed volatility up. These conditions probably will not last. More 

GLD: All the Reasons You Need to Avoid Gold, Gold Stocks

Gold and gold stocks continue to attract interest, but fundamentals and technicals both indicate that ETFs such as GLD and GDX should be avoided for now. More