Your insurance premiums are placed
into stocks or bonds and earn interest over the life of the policy.
It would be silly for me to start putting money
into stocks or bonds or any other asset class.
If you need to pay for them by tapping
into your stock or bond holdings at a time when they're taking a beating in the market, you'll lock in your losses.
Not exact matches
That caused some Wall Street houses to declare the beginning of the long - awaited «great rotation,»
or mass exit from
bonds into stocks.
If so, it may be time to sell some
stocks and shift money
into cash
or bonds.
Furthermore, the 1 percent you pay to your money manager doesn't always cover the costs of buying and selling the
stocks and
bonds in your portfolio
or the sales charges (also known as loads) and administrative fees charged by the mutual funds your manager puts you
into.
A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount
into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest
or deploying proceeds
into assets — such as
stocks, commodities,
bonds,
or real estate — that are denominated in the second currency.
For example, some investors may have taken on more risk in their portfolios in recent years by moving
into lower - quality
bonds or dividend
stocks, in an attempt to generate additional yield.
Bond act as both a volatility - minimizer for those investors that can't stomach a large
stock allocation and a source of stability during
stock market sell - offs for either spending purposes
or liquidity for those that need to rebalance
into lower
stock prices.
Rather than paying these pensions out of current income as it is earned
or plowing their earnings back
into investment in their own business, companies take their income and «financialize» it by buying
stocks and
bonds for their pension funds.
And I think that given higher volatility in the markets, going
into higher yielding
bonds or stocks, the risker ones, is unadvisable.
It doesn't matter if you are a fixed income investor considering purchasing
bonds issued by a company, an equity investor considering buying
stock in a firm, a landlord contemplating leasing a property to an enterprise, a bank officer making a recommendation on a potential loan,
or a vendor thinking about extending credit to a new customer, knowing how to calculate it in a few seconds can give you a powerful insight
into the health of company.
When companies are doing well, investors are able to convert these securities, debentures
or bonds,
into stocks, which has a higher value.
After a relentless search for yield, investors have piled
into dividend - yielding, defensive
stocks,
or what we call «
bond market proxies,» making many such segments extremely expensive.
While retail investors may want to sell their soaring
stocks to buy
bonds,
or sell their
bonds to buy
into the market rally, they shouldn't make any drastic moves, one financial advisor warned Wednesday.
In other words, it's time to slice up the
stock and
bond pies
into allocations across specific investment categories: large, mid, small, and international
stock holdings, plus determining how much intermediate
or short - term
bonds you want to own.
That could mean investors are moving money out of
stocks and
into bonds in anticipation of disappointing earnings;
or that foreigners who are worried about their own economies are looking for a safer haven in the U.S.;
or that expectations of future inflation have declined, allowing long - term interest rates to come down a little.
The elitists have no problems whatsoever with stratospheric
stock and
bond prices; 5,000 year low interest rates; $ 450 million Da Vinci's; $ 250 million private homes; $ 50,000,000 annual salaries for circus masters, whose role in keeping the masses distracted and dumb is vital; $ 1.9 million Aston Martins; $ 100,000 Air Jordan sneakers,
or any of the other prices that have now gone
into outer space.
Baked
into the returns of every overseas
stock or bond is exposure to its local currency.
Non-asset holders were punished — their bank deposits now generate little
or no income, and they were forced to move
into riskier assets, such as
stocks,
bonds, real estate,
or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind of market distortions does the Fed loaning out money at 0 % cause?).
You may also want to consider shifting a portion of your investment portfolio
into income - producing assets, such as
bonds or dividend - paying
stocks.
While overseas money pours
into stocks and
bonds, hedge funds don't boost efficiency
or help in trade wars.
Or if you need a bit of return on those dividends without the volatility of the
stock market, you could drop those dollars
into a short - term
bond fund.
First of all, convertible
bonds typically convert
into either preferred
stock or common
stock.
Originally most equity investments were made with an eye towards how much income they would pay to the
stock holder; today Dividend paying
stocks (
or ETFs
or Mutual Funds) play that role along with Fixed Income (
Bond / Debt) investments and increasingly more sophisticated investors are looking
into Alternative Investments («Alts»
Explore Income Generating Investments: Originally most equity investments were made with an eye towards how much income they would pay to the
stock holder; today Dividend paying
stocks (
or ETFs
or Mutual Funds) play that role along with Fixed Income (
Bond / Debt) investments and increasingly more sophisticated investors are looking
into Alternative Investments («Alts» include private equity, hedge funds, managed futures, real estate, commodities and derivatives contracts).
If you're not sure of the asset make - up in some of your investments — which may be the case if you own funds that invest in a combination of
stocks and
bonds — plug the names
or ticker symbols of your funds
into Morningstar's Instant X-Ray tool, and you'll see how your portfolio overall is divvied up between
stocks,
bonds and cash.
If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as
stocks)
into a lower risk asset class (such as government
bonds or money market funds).
And since a more conservative
stocks -
bonds mix can reduce your potential for long - term gains, putting more of your nest egg
into bonds or cash could mean that you'll end up with less spending cash over the course
or retirement,
or that you'll run through your savings more quickly.
Invest — to put your money
into CDs, money market accounts, mutual funds, savings accounts,
bonds,
stocks or objects that you hope will grow in value and earn you more money.
If you own funds
or ETFs that own both
stocks and
bonds, you can get a breakdown of their
stocks -
bonds mix by plugging their names
or ticker symbols
into Morningstar's Instant X-Ray tool.
For example, instead of fleeing
stocks altogether
or shifting your asset mix more toward
bonds and cash, you might also consider putting some, but not all, of your nest egg
into an immediate annuity that will provide a guaranteed payout for life.
These allow you to put money
into various kinds of investments (savings account,
bonds,
stocks, ETFs, mutual funds) and you don't pay any tax on the capital gains, dividends
or interest.
Whether it be
stocks,
bonds,
or Bullion, make sure you know what you're getting
into!
You can put your money
into a savings account, GIC,
stocks,
bonds or mutual funds.
Regarding diversification, this isn't strictly limited to being in various currency - related carry trades, but through diversification
into other asset classes as well, including
stocks,
bonds, and real assets, such as gold
or commodities.
It will only sit there collecting 3 % until I find a good time to deploy the money back
into stocks or REITs
or long
bonds or whatever.
With all the attention the financial press gives to the market's ups and downs, it's easy to equate smart investing with good timing — i.e., knowing when to jump out of
stocks and
into bonds or predicting which type of investment is about to skyrocket and which is ready to nosedive.
Now if you're in your late 50s and expect to retire at 62, you should think about shifting some of your
stocks into bonds or an equally conservative investment.
Or should I cut down on the
bond fund and allocate more
into the other
stock index funds?
(Personal choice retirement account) is an investment option that allows participants to invest directly
into a individual
stocks or bonds,
or a mutual fund not offered in their retirement plan.
«You're transferring money away from retirees» who must either delve
into stocks, gold
or some other higher - stakes investment,
or languish in savings accounts and low - yielding
bonds, Grantham said.
Reference security: Security X is a reference security for another security, Y, if Y may be converted
into, exchanged for,
or exercised to purchase
or sell X,
or if X in whole
or part determines the value of Y. For example, if a convertible
bond is convertible
into common
stock, the common
stock would be a reference security for the
bond, but the
bond would not be a reference security for the
stock.
Arbitrage might take advantage of imbalances in prices between two markets for the same security (such as a domestic and a foreign market)
or between two types of securities whose value depends on the same underlying security (such a
stock and a
bond convertible
into the
stock).
It would be great if we could ride the
stock market during bull upswings and then jump
into bonds or cash just before the boom turns to bust.
So if you find yourself with a portfolio that is nearly all
bonds or GICs, now may be a good time to start slowly edging back
into stocks.
You can't actually invest in an RRSP itself, but you can invest in things like mutual funds,
stocks or bonds that go
into an RRSP.
The research looked
into the performance of a multitude of American corporate pension plans and showed that investment policy — the strategic mix of
stocks,
bonds, and cash — explains over 90 % of a portfolio's variance (
or risk).
It bundles a portfolio of
stocks or bonds into a single, simple package.
Financial planner Michael Kitces notes that this is hardly the first time that retirees have faced challenging financial markets, including long periods where
bond yields have been low and the
stock market has stagnated
or gone
into a prolonged slump.