Introduction to Bonds

Bonds have long been considered the boring, poorer performing alternative to stocks. However, in most portfolios, there is an important role to be played by bonds and it is crucial to understand the nature of this alternative to the stock market.
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Buying and Selling Bonds

When purchasing bonds for your portfolio, it is important to understand your goals. These goals and your time horizon will affect the best type of bonds for you. If you are looking for capital appreciation, your best bet is to go with bonds with long-term maturities. These bonds tend to be more sensitive to interest rate fluctuations and therefore will provide greater appreciation if interest rates decrease (of course, they will also lose more if rates increase). They also usually have higher yields than short-term bonds. Alternatively, if you are looking for a more stable investment, shorter maturities will lead to decreased volatility. (more)

Introduction to Bonds

Buying and Selling Bonds

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