Tuesday, 25 April 2023

Bond investing can sometimes fail

Bond investing can sometimes fail, despite being traditionally considered a safe and steady investment. 

Interest rates, inflation, and credit ratings can all affect the value of bonds, and investors need to carefully consider these factors before investing in them. 

For example, the Puerto Rican government's default on its bond payments, which resulted in losses for many investors who had bought the bonds. 

Be wary of the risks associated with high-yield or "junk" bonds, which offer higher returns but also come with a higher risk of default. 

Conclusion:

While bond investing can be a useful tool for investors looking for steady income, it is important to understand the risks involved and to diversify one's portfolio across different types of investments.


https://www.youtube.com/watch?v=s_sNy-SZ4MM&t=2s




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