What is a bond fund? "Bond funds"and"income funds"are terms used to describe a type of investment company(mutual fund,ETF,closed-end fund or unit investment trust(UIT))that invests primarily in bonds or other types of debt securities.Depending on its investment objectives and policies,a bond fund may concentrate its investments in a particular type of bond or debt security—such as...
Bonds can provide a means of preserving capital and earning a predictable return.Bond investments provide steady streams of income from interest payments prior to maturity. The interest from municipal bonds generally is exempt from federal income tax and also may be exempt from state and local taxes for residents in the states where the bond...
There are three main types of bonds:1.Corporate bonds are debt securities issued by private and public corporations.Some common types of corporate bonds include: Investment-grade.These bonds have a higher credit rating,implying less credit risk,than high-yield corporate bonds. High-yield.These bonds have a lower credit rating,implying higher credit risk,than investment-grade bonds and,therefore,offer higher interest rates in return for...
A bond is a debt security,like an IOU.Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond,you are lending to the issuer,which may be a government,municipality,or corporation.In return,the issuer promises to pay you a specified rate of interest during the life...
Stocks offer investors the greatest potential for growth(capital appreciation)over the long haul.Investors willing to stick with stocks over long periods of time,say 15 years,generally have been rewarded with strong,positive returns. But stock prices move down as well as up.There’s no guarantee that the company whose stock you hold will grow and do well,so you can...
As we all get ready for the New Year and think about making some resolutions,consider including some investing resolutions as part of your plan.Many of us resolve to live a more healthy life.Your investment strategy should take into account the life you want to lead for the long run.Informed investors make better investing decisions.With that...
Is it time to rebalance your investment portfolio?It depends.Many investment professionals recommend rebalancing a portfolio regularly,typically every six to 12 months.If you’re working with an investment professional they can provide suggestions on how best to rebalance your portfolio to continue to meet your financial goals.Rebalancing your portfolio yourself can be complicated,however,there are some investment products...
Investors buy stocks for various reasons.Here are some of them:Capital appreciation,which occurs when a stock rises in priceDividend payments,which come when the company distributes some of its earnings to stockholdersAbility to vote shares and influence the company Why do companies issue stock? Companies issue stock to get money for various things,which may include:Paying off debtLaunching...
In October 2023,the current bull market turned one year old,and as Ken Fisher shared in his video recapping 2023 and summarizing his 2024 outlook,bull markets that reach one year almost always make it to two.We think 2024 likely proves no exception.Why?Fundamentally,we believe stocks move most on the difference between expectations and reality.So when thinking about...
The Bitcoin (BTC) price is enjoying an end-of-week relief rally in wake of economic data that showed inflationary pressures in the US continued to subside to more acceptable levels in December 2023.US Core PCE Price Index figures showed YoY inflation falling to 2.9%, below the expected rate of 3.0%.The Bitcoin price was last probing $42,000,...