It’s been an unusual week in the bond market, and not necessarily in a good way. This has many investors questioning the value of bonds, which is understandable. Bonds are supposed to be the “safe” side of a portfolio, but they’ve struggled in recent years. Arguably, the drama we’re seeing in the [...]
Defending against inflation
The Open Kitchen is an old-time restaurant that’s been a fixture in Charlotte, North Carolina for 75 years. Among the memorabilia lining its walls are menus from years gone by. Those old menus provided David Enna, a financial journalist, with a laboratory for examining the long-term effects of [...]
Boring investments
For many investors, talking about bonds is about as interesting as watching paint dry. They aren’t nearly as interesting as stocks. But if you have a portion of your portfolio allocated to bonds—or plan to—it’s a topic worth some discussion. The bond market is actually much larger and much more [...]
Giving Credit
About once a week, someone will say, “I don’t understand bonds.” Sometimes they’ll state it in stronger terms: “I don’t like bonds.” So it’s worth taking a closer look. Fundamentally, bonds are just IOUs. If you buy a $1,000 U.S. Treasury bond, you’re simply lending the government $1,000. The [...]
Navigating the Bond Market
In the world of investments, bonds certainly aren’t the most interesting—but they generate their fair share of debate. Especially after the rout suffered a few years ago—when total-bond market funds dropped 13%—many investors are wondering how best to proceed. One open question in particular is [...]
