News flash: Investors who assumed their investments in conservative bonds and bond funds were safe from losses are learning otherwise... More
The 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.
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
The August jobs report will put the iShares 20+ Year Treasury Bond ETF (TLT) in play. Bonds now face a critical juncture. More
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
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
A misplaced fear of inflation has driven stocks and bonds down and pushed volatility up. These conditions probably will not last. More
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