“One thing I definitely don’t want in my portfolio is bonds,” a prospective client told me a few weeks ago. “Bonds are boring and don’t give good returns.” Her confidence in her money script that bonds had no place in her portfolio was palpable. However, her understanding of the role bonds play in a portfolio […]
Tag Archives | bonds
As I pointed out last week, bonds are the hardest investment class for most people to understand. Just to make things more complicated, not all bonds are the same. There are great differences between government, corporate, long-term, short-term, TIPS and high-yield bonds.
What would you guess is the hardest investment class for most people to understand? You might think it’s stocks, or a subclass of stocks like those of companies in emerging markets. Or how about real estate investment trusts (REITS) that hold various types of investment real estate. Maybe it’s commodities or complex alternative investments like […]
In December, the Federal Reserve raised the federal-funds lending rate by .25%, only the second increase in the past decade. The day the rate hike was announced I received several calls from journalists, all wanting to know what this means for the economy. My email inbox also started filling up with questions about the effect […]