Understanding Bond Yields

Most investors find it difficult to understand bond yields. We break it down for you so you can understand how bond yields work and, more importantly, what you should really care about.

What Are Bonds and How Do They Work?

Bonds are conservative, mostly reliable investments that provide stability to any portfolio. It’s important to understand exactly how bonds do this and how they work with the rest of your portfolio.

Why Bonds Fall When Interest Rates Rise

Bonds move down when interest rates rise, however, depending on the bond they will move differently. If you are concerned about a change in interest rates, learn how to it will affect your investments.

Stocks vs. High Yield Bonds: Which is Better?

High yield or “junk” bonds actually move a lot like stocks with one big difference – they pay a big premium. Learn why a high yield bond portfolio can low volatility and provide better returns than stocks.

Cash in on Municipal Bond Funds

Municipal bond funds can be a great way to earn yield in your account tax-free. We explain the advantages of muni bond funds and show you how they work.

How to Short Bonds

If you think bonds are going to fall – make a trade. We have advocated a long term, diversified approach as the investing methodology that will produce the best results for the majority of your portfolio for a long time. However, mixing some shorter term positions, options strategies and even a few speculative bets into … Continued

Understanding How Stocks and Bonds Work Together

Every financial adviser you will ever talk to and every investment article that addresses portfolio diversification will tell you to put some of your money into stocks and some of your money into bonds. But why? The reason: stocks and bonds typically don’t move in the same direction—when stocks go up, bonds usually go down, … Continued

Using TIPS to Profit From Inflation

You don’t have to let inflation control your profits. Is inflation good or bad for individual investors? The answer is that it depends. Inflation can eat away at your purchasing power and your stock returns, or it can become an investment opportunity. This article will introduce you to an interesting exchange traded fund (ETF) that … Continued

Combining LEAPS Index Options and Bonds

Investors often have very polar attitudes towards the market. Conservative investors concerned about deteriorating economic conditions are pushing into bonds while more aggressive and speculative investors are betting that stocks have reached a bottom and are moving back in. More moderate investors are struggling to decide what to do when looking at the two extremes. … Continued