During a Reddit AMA I hosted in November, I was asked the following question. I didn’t get a chance to respond live to the question, so here it is. Question: My primary investing vehicle at the moment is index funds. 27 years old. While I know I should be holding some bonds, the pandemic has […]

Since the end of the Great Recession, the 10-year yield has been hovering around 3%. The last time rates were above this level was during the Federal Reserve’s rate hikes in 2018, however that wave of monetary hawkishness faded soon. Due to the perception of limited long-term economic growth, the 10-year was only 2% heading

Bonds are regarded as a defensive asset class since they are less volatile than other asset classes like equities. Many investors use bonds as a source of diversification in their portfolios to assist minimize volatility and total portfolio risk. What percentage of my portfolio should be bonds? Keep 60% of your portfolio in stocks and

Bonds offer better yields than bank accounts, but the risks associated with a well-diversified bond portfolio are minimal. Bonds, in general, and government bonds in particular, help stock portfolios diversify and prevent losses. Bond ETFs make it simple for investors to benefit from the advantages of a bond portfolio. Is it necessary to include bonds

If you’re approaching retirement age or are a more conservative investor in general, investing your 401(k) assets in bonds may make sense. However, doing so may cost you in the long run in terms of portfolio growth. Talking to your 401(k) plan administrator or financial advisor about the best strategy to weather a bear market

“The I bond is a fantastic choice for inflation protection because you receive a fixed rate plus an inflation rate added to it every six months,” explains McKayla Braden, a former senior counselor for the Department of the Treasury, referring to a twice-yearly inflation premium. Why invest: The Series I bond’s payment is adjusted semi-annually

Down markets provide an opportunity for investors to investigate an area that newcomers may overlook: bond investing. Government bonds are often regarded as the safest investment, despite the fact that they are unappealing and typically give low returns when compared to equities and even other bonds. Nonetheless, given their track record of perfect repayment, holding

Financial institutions discontinued issuing paper versions of Series EE and Series I savings bonds on January 1, 2012. Many of us still own bonds in paper form, even though any bonds purchased after this date are stored electronically. Since the United States Treasury shut down the Savings Bond Wizard in May 2018, you have two

If you’re approaching retirement age or are a more conservative investor in general, investing your 401(k) assets in bonds may make sense. However, doing so may cost you in the long run in terms of portfolio growth. Talking to your 401(k) plan administrator or financial advisor about the best strategy to weather a bear market

Bonds are often regarded as safe investments during a bad market. Because bond prices tend to climb when stock values decrease. When a bear market coincides with a recession, bond prices tend to rise and rates tend to fall right before the recession reaches its darkest point. Bond prices are also affected by interest rates,