Sentences with phrase «bonds and cash tend»

This is why stocks tend to keep up with inflation over time, but bonds and cash tend to lose their purchasing power.

For example, when interest rates are high, bonds and cash tend to do better than stocks.

Not exact matches

A target - date fund is only as good as its underlying components, which tend to be other mutual funds that cover stocks, bonds and cash.

Short - dated Bonds tend to be a proxy for cash, long - dated bonds a hedge against deflation, and index - linked bonds a hedge against inflaBonds tend to be a proxy for cash, long - dated bonds a hedge against deflation, and index - linked bonds a hedge against inflabonds a hedge against deflation, and index - linked bonds a hedge against inflabonds a hedge against inflation.

The difference is that individual bond portfolios tends to have higher costs, less diversification, and cash drag.

Since governments tend to have AAA bond ratings - the risk is about as low as cash and so DJClayworth's answer comes into effect: Bob gives Sue cash to give to Mary.

And when bond investors think rates will increase, they tend to move to short - term bonds or cash.

I have to admit that I'm not as methodical as some when it comes to rebalancing, but I do tend to do some rebalancing from fixed income (bonds and cash) to stocks after stock market declines of 10 % to 20 %, and perhaps rebalance from stocks to fixed income after stock market increases of 25 % or more.

Remember, we tend to underestimate our life expectancy in retirement, and thus underweight our equity allocations relative to cash and bonds.

Cash and cash equivalents, which tend to earn less than bonds are «located» in the middle from a tax location or tax optimization standpoCash and cash equivalents, which tend to earn less than bonds are «located» in the middle from a tax location or tax optimization standpocash equivalents, which tend to earn less than bonds are «located» in the middle from a tax location or tax optimization standpoint.

During the final year of the Fund's operations, as the bonds held by the Fund mature and the Fund's portfolio transitions to cash and cash equivalents, the Fund's yield will generally tend to move toward the yield of cash and cash equivalents and thus may be lower than the yields of the bonds previously held by the Fund and / or prevailing yields for bonds in the market.»

High - quality bonds tend to go up in value and accrue more interest, similarly to cash — which has no yield — but does appreciate dramatically, when everything else goes down.

Because many of those indexes may tend to rise and fall at the same time, which is why it's a good idea to throw a lot more asset classes such as some commodities, bonds, property and cash, and other assets into the mix.

Nevertheless, cash, bond, and stock financial asset interests tend to be the most easily changeable in their composition.