Bonds
Finally Better Than My Mattress: Safe Bond Funds
Last time we spoke about safe bond funds, I recommended an unconventional alternative: my mattress. It was June 2022. Interest rates were rising, bond prices plummeting, and we contrarians were smartly sitting on sizeable cash positions. Thoughtful reader William wrote in asking about using short-term bond funds as “cash equivalents.” After all, wouldn’t some yield be better than no […]
Should You Invest In Municipal Bonds?
Investing in muni or municipal bonds gives you an excellent opportunity to earn tax-free income through the interest you receive from the issuer. State and local governments issue debt securities to raise funds for their daily obligations and public projects such as schools and highway construction. Moreover, muni bonds act like a loan where the […]
Should I Buy Bonds Now?
The advantages of bonds include a steady cash flow and a reliable source of income. Government entities and corporations raise money to fund projects and recurring obligations. When you buy bonds, you become a lender to the issuer and earn interest in return. Although the bond market hasn’t been attractive for quite some time, as […]
Silent Killers Of Stock And Bond Investors 50+
Recently I was shocked after speaking with five different investors on the phone. These investors have been involved in the markets for many years, and they trade their accounts. Surprisingly, not a single one of them knew what drawdowns were, as there are two types. In short, it is how we gauge an overall investment […]
The Best Bonds To Buy In A Recession
Generally, recessions are bullish for bonds. Which makes this 3.8% bond yield a “best recession bet.” Why are we talking bonds in a year where they have all been crushed? Well, that’s the reason. The cure for poor bond performance is the high yields that are now staring us in the face. We look forward, not backward. […]
Is A Recession About To Occur Or Already Here?
Traditionally, the technical term “recession” is defined as two consecutive quarters of declining GDP alongside monthly economic data like growing unemployment. The average consumer may see that definition as irrelevant, as it looks like a recession may already be here. For them, the National Bureau of Economic Research, which is tasked with declaring when a […]
Are I Bonds A Good Investment?
You Can Beat Inflation with I Bonds For the first time in decades, inflation is inching towards double digits. During April 2022, the 12 month inflation rate topped 8%. The inflation rate hasn’t been this high since 1982, as measured by the Consumer Price Index, or CPI. This means that you’ll need to earn 8% […]
Is There Still Time To Be Bullish On Bonds?
As low as interest rates have been lately, it doesn’t seem to have diminished investors’ appetite for government bonds. A yield under 1.50% for 10-year Treasury notes is not a detriment, apparently, when the rest of the developed world is also in an ultra-low rate cycle. Bond investors may have assumed the looming threat of […]
Credit Crisis Concerns? These Are The Worst 1,894 Bonds To Own Now
We all love 7% yields here. But how do you feel about Sprint’s 7.88% bonds that mature in September 2023? Well, the company might make it until then. Shares trade for pocket change at just over $6. Equity investors in Sprint (S), however, have been (wait for it) sprinting to the exits lately: The Stock Feels the Weight of Sprint’s […]
Want To Invest Like The Pros? Roll Your Bonds As The Yield Curve Flattens
In the beginning of time, BC (Before Children), I traded bonds at Prudential Securities. It wasn’t like the “Wolf of Wall Street” or even Bonfire of the Vanities, but it had its moments. We didn’t get a lot of training. As we came in the door we were expected to know things like convexity and duration. And to […]
