Tag Archives: Bonds

Retirement Planning: The Big Lesson of 2016 for Investors | Money

Posted on by

Don’t let the constant flow of predictions and prognostications about the markets and the economy—no matter how prescient they may seem—divert you from a comprehensive plan designed to achieve success over the long term.

If you’ve ever been inclined to try to improve your retirement prospects by closely tracking the financial news and then shifting your strategy to stay a step ahead of the market’s twists and turns, 2016 seemed to provide a bounty of opportunities.

— Read on money.com/money/4618089/big-lesson-from-2016-retirement-planning-investing/

Should You Own Bonds in a Rising Rate Environment? – Retirement Researcher

Posted on by

One of the first things that finance students learn is that bond prices (and therefore bond returns) are inversely related to interest rates. Considering that all else is equal, when interest rates are going down, bond prices will go up, and when interest rates are going up, bond prices will go down.

This is fundamental to how finance works, and this raises the obvious question of why you would want to hold bonds when rates are rising – why would we choose to lose money?
— Read on retirementresearcher.com/should-you-own-bonds-in-a-rising-rate-environment/

Understanding Bonds: Riding the Yield Curve

Posted on by

Rates on bonds of different maturities behave independently of each other with short-term rates and long-term rates often moving in opposite directions. By comparing long- and short-term bond yields, the yield curve describes future trends in bond returns.
— Read on www.kiplinger.com/article/investing/T052-C000-S001-riding-the-yield-curve.html

Bond Market: Why Is Everything Upside Down? | Charles Schwab

Posted on by

Bond yields in major developed countries declined sharply in mid-August, bringing the total amount of negative-yielding bonds around the globe to more than $16 trillion. The entire German yield curve is below zero. In the U.S., the 30-year Treasury yield fell below 2% for the first time in history, causing the yield spread between two-year/10-year Treasuries to invert briefly, for the first time since 2007. The three-month/10-year spread has been inverted on and off since March.
— Read on www.schwab.com/resource-center/insights/content/bond-market-why-is-everything-upside-down

If you want to understand how the world works, you need to understand bonds – MarketWatch

Posted on by

The stock market is quite a bit smaller, and frankly, it isn’t that important. People focus on it because stocks are easy to understand. But if you want to understand how the world works, you need to understand bonds.
— Read on www.marketwatch.com/story/if-you-want-to-understand-how-the-world-works-you-need-to-understand-bonds-2019-08-22