May 18, 2012

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Bonds

Although they may have a reputation for being the domain of stodgy, well-heeled investors browsing over their portfolios by the fireplace with a cigar in one hand and a fountain pen in the other, bonds have a place in everyone's portfolio. In addition to allowing you to set aside "reserve" capital for emergencies or stock market crashes, intelligent bond selections can take advantage of changes in interest rates, the underlying issuer's credit profile, and more.

We Should Rename the 30-Year Treasury Bond “Financial Suicide Bonds” … Because That Is What They Are for Investors at Current Yields

September 22, 2011 By 3 Comments
30-Year Treasury Bond Overvalued

I am of the very strong opinion that, at current prices, the 30-Year United States Treasury Bond is one of the worst possible investments in the entire world.  More frankly: I believe we are witnessing one of the greatest asset bubbles in government bond history.  I've taken to calling these securities "Financial Suicide Bonds".  This goes far beyond the bond bubble we are seeing elsewhere. Note that I'm not talking as a taxpayer, but rather as an investor.  In fact, I don't fault the … [Read more...]

Filed Under: Bonds

Stocks vs Bonds vs Gold Returns for the Past 200 Years

July 26, 2011 By 6 Comments
General Electric Stock from the 1940s

I write a lot about investing in stock and investing in bonds over at Investing for Beginners at About.com, a division of The New York Times. There is a reason I tend to be far more favorable to equity investments (stocks) than fixed income investments (bonds) when it comes to long-term investing and why much of my content is focused on the stock market.  History has shown that owning businesses - which all a share of stock is; a piece of ownership in a business - generates the best … [Read more...]

Filed Under: Bonds, Economics, Gold and Gold Investing, Portfolio Management, Stocks

Investing in Series I Savings Bonds Remains Seriously Underrated

June 12, 2011 By 5 Comments
Series I Savings Bonds

I am convinced that the Series I savings bond program remains one of the most underrated investments for the average American in history.  So much so that I wrote tens of thousands of words on the topic over at my the Investing for Beginners site.  But tonight, I was writing a new piece of content to add to the savings bond hub that will be published before morning when it just hit me  how truly underrated these are as an alternative to savings for low income and middle class … [Read more...]

Filed Under: Savings Bonds

Bond Duration and Your Bond Portfolio

October 8, 2010 By 4 Comments
Kansas City Power and Light Bond for Bond Duration

Bond duration is one of the biggest and most important things to understand when managing a portfolio that includes bonds or other fixed income assets.  Managed well, bond duration can give the chance for huge capital gains profits.  Managed poorly, bond duration can wipe out a supposedly conservative bond portfolio in no time, leaving nothing but a capital losses.  This is precisely the sort of topic that is important but can't be discussed because it will scare away most new … [Read more...]

Filed Under: Bonds

We Are Living in the Midst of One of the Biggest Bond Bubbles in History

September 24, 2010 By 8 Comments
McDonald's Bond Certificate Corporate Debentures

Today, I was sitting at the dining room table, drinking a cup of coffee wearing the Brooks Brothers pajamas I picked up on my birthday a few days ago, and watching the stock market skyrocket when it occurred to me that, given the secret project and some other things going on at the business, I want to build some cash and bond reserves at one of the individual operating companies; maybe put aside money a little at a time, let it build and do something fun with it three or four years from now, … [Read more...]

Filed Under: Corporate Bonds Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,

A $1,000,000 Municipal Bond Dilemma

August 30, 2010 By Leave a Comment
Municipal Bonds and Muncipal Bond Investments

Those of you who follow my writings at About.com, a division of The New York Times, know that I've written about municipal bonds at the Investing for Beginners site including one article that detailed some ways to help you determine if a specific municipal bond was "safe". At the wedding this weekend, I was discussing a family friend, who shall remain nameless, who is in his 80's and has more than $1,000,000 parked in municipal bonds.  As many of you know, this means he earns tax-free … [Read more...]

Filed Under: Municipal Bonds, Saving Money Tagged With: , , , , , , , , , ,

Why Savings Bonds Should Be In Your Portfolio

December 10, 2009 By Leave a Comment
United States savings bonds Series EE

I am working on more than 50+ pages of new content for the Investing for Beginners site detailing the importance of United States savings bonds; in fact, I'm going to build several huge hubs around it. As odd as it sounds given the boring nature of savings bonds, it's gotten me really excited about these classic investments. Update: The savings bond special is now published at About.com!  Please go check it out.  You can start with the parent savings bond hub, which will lead you into … [Read more...]

Filed Under: Savings Bonds Tagged With: , , , , , ,
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