Sentences with phrase «bond values fluctuate»

b) Because bond values fluctuate, you may take a loss if you need the money before they mature.
Let's learn how bond values fluctuate by working through an example.
Important Risks of Investing in The BlackRock Global Allocation Fund: Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions.
Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions.
Bond values fluctuate, so the value of your investment can go up or down depending on market conditions.

Not exact matches

In theory, you could hold an individual bond to maturity and never lose any money even though the market value of the bond may fluctuate based on changing interest rates and other factors (but you could still lose out to inflation over time).
Yields and market values will fluctuate, and if sold prior to maturity, bonds may be worth more or less than the original investment.
Unlike stocks whose values fluctuate from time to time, the returns on your bonds are almost always guaranteed and predictable.
The market value of these bonds fluctuates, too, but you don't see it.
A portfolio that has some portion of bonds versus all stocks is going to fluctuate less in value.
The prices of bonds can fluctuate, and an investor may lose principal value if the investment is sold prior to maturity.
Short - term bonds typically do not fluctuate widely in price but the fact remains that unlike a savings account, a short - term bond can decline in value.
These risks include interest rate risk, which may cause the underlying value of the bond to fluctuate.
Fixed income is considered to be more conservative, because bonds tend to pay a steady stream of income, fluctuate less in value and typically return an investors» money at a predetermined date.
Therefore, bonds fluctuate in price, selling at a premium (above) or discount (below) to its face value (par value).
The present value of the bond will fluctuate widely with changes in prevailing interest rates since there are no regular interest payments to stabilize the value.
Though they are typically considered «safe» investments, bond values can fluctuate just like stocks, though typically with less volatility.
The value of your bond will most likely be different, since the market is constantly fluctuating.
The only exception is if the bond invests only in I and EE government bonds — these bonds aren't sold on secondary market, so their value doesn't fluctuate.
While bonds come with a promise to repay you the principal at the time of maturity, the value of the bond between now and maturity can fluctuate.
Securities, even bonds, fluctuate in value and pose a risk to the principal investment.
Bond funds tantalize you with suggestions of still - higher yields, although in their small print they remind you that «the value of your shares will fluctuate
As with the maturity date, the longer the duration, the greater the risk of the bond fluctuating in value.
The return and principal value of bonds fluctuate with market conditions and when sold, bonds may be worth more or less than their original cost.
If you buy a 20 year bond, you can be guaranteed its value in the secondary market will fluctuate regardless of the financial health of the company.
The return and principal value of bonds fluctuate with changes in market conditions.
The fact is, individual bonds have market values that fluctuate with market conditions too, but it takes some effort to translate that into a yield figure at given moment, so it's easy to tune it out and forget it exists.
It is true that bond funds fluctuate in value but unless you need money maturing at a certain point in the future, bond funds are an acceptable alternative to owning bonds directly in long - term portfolios.
But there is value in not having to watch your holdings fluctuate like bond mutual funds or ETFs do.
In active bond investing strategy, investors predict the future of the bonds that they are investing in and expect the value of the bonds to fluctuate as per their predictions.
A swap into shorter - maturity bonds will cause a portfolio to fluctuate less in value, but may also result in a lower yield.
Investments in stocks and bonds are subject to risk of economic, political, and issuer - specific events that cause the value of these securities to fluctuate.
If you are considering buying a bond, remember that the market value of a bond is at risk when interest rates fluctuate.
Because bonds can be traded before they mature, causing their market value to fluctuate, the current yield (often referred to simply as the yield) will usually diverge from the bond's coupon or nominal yield.
Unlike stock value, which fluctuates with the market, you will always receive the face value or «par value» of your bond once it has matured.
STOCKS FLUCTUATE MORE IN VALUE than bonds, so you can calm down a stock portfolio by adding a small position in bonds.
Bonds can be traded on the open market and their principal value can fluctuate in large part due to changes in the interest rate environment or in the financial stability of the issuer.
The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
Like any ETF, bond ETFs fluctuate or change value in price over time, so these are more risky than buying the bond itself.
Bond values can fluctuate based on factors such as interest rate changes and the risk that the company or government may not repay its debts.
Bonds funds can fluctuate in value, but they are nowhere near as volatile as equities, so they're like adding cool water to a hot bath to make it more comfortable.
As the account owner, you have the right to invest these bonds and other stocks in the market, but keep in mind that this causes your cash value investment to fluctuate.
It takes a long time for the bond to mature because the savings bond value is determined by interest rates that fluctuate over time.
Except for money market funds, in which the value of shares remains constant, the price of mutual fund shares fluctuates, just like the price of individual stocks and bonds.
The return and principal value of bonds and bond fund shares fluctuate with changes in market conditions.
The return and principal value of bonds and mutual fund shares fluctuate with changes in market conditions.
5 Bond Funds - Investors should be aware that the fund's yield and the value of its portfolio fluctuate and can be affected by changes in interest rates, general market conditions and other political, social and economic developments.
The reason why this is important is because bonds in mutual funds are traded on the secondary market and will fluctuate in value based on current market interest rates.
A bond's price in the secondary market fluctuates daily around its face value to reflect changes in market interest rates.
Municipal Bond Risk (Municipal Bond Fund only): The value of municipal bonds that depend on a specific revenue source or general revenue source to fund their payment obligations may fluctuate as a result of changes in the cash flows generated by the revenue source (s) or changes in the priority of the municipal obligation to receive the cash flows generated by the revenue source (s).
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