What sort of investor might benefit from holding bonds?
Posted by admin in Finance Saturday, 16 April 2011 22:16 2 Comments
What sort of investor might benefit from holding bonds?
Posted by admin in Finance Saturday, 16 April 2011 22:16 2 Comments
What sort of investor might benefit from holding bonds?
Generally, a person who desires these qualities would buy bonds: (a) a predictable stream of income, (b) lower risk than in equity investments, (c) a longer term “buy and hold” investment.
However, the price of bonds can vary as interest rates fluctuate, so they are not without some risk for the shorter term investor.
When you talk bonds you always have to consider the maturities. Right now only the very foolish are holding long term maturities. The interest rates are going up and long term fixed assets will tank.