I've gotten a huge number of emails and
questions on bond market liquidity in the last few months.
Not exact matches
That data raised a fresh round of
questions about how the Federal Reserve will proceed
on further cutting back
on its massive monthly
bond purchases, which have kept long - term rates low and encouraged a strong rally
on equity
markets.
But poll participants who answered a
question on whether a bear
market had begun in government
bonds were evenly split.
Many investors haven't had to worry about this
question for years, as the Federal Reserve has continued its zero - rate policy, and the bull
market in
bonds has gone
on for decades.
The heart of my
question is really this: Is the advice to put part of your portfolio into
bonds assuming you are buying and holding to maturity, or trading them based
on market value fluctuations?
Today I wanted to dig deeper into style factors and answer some
questions that have come up from investors
on this fast growing segment of the
bond market.
You answer 11
questions ranging from how long your money will remain invested to how you would react to a serious
market setback, and the tool not only recommends an appropriate mix of stocks and
bonds, but also shows you how that mix as well as others more aggressive and more conservative have performed
on average in the past as well as in up and down
markets.
Question: What is the ratio of
bond ETF trading volume conducted
on the secondary
market?
The following report includes a company - by - company comparison of Canadian high yield
bonds» covenant strength based on Moody's Covenant Quality Assessments: The Canadian High Yield Bond Market: Frequently Asked Questions Canadian Corporations: Canadian High - Yield Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
bonds» covenant strength based
on Moody's Covenant Quality Assessments: The Canadian High Yield
Bond Market: Frequently Asked Questions Canadian Corporations: Canadian High - Yield Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inv
Market: Frequently Asked
Questions Canadian Corporations: Canadian High - Yield
Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds Continue to Offer More Protection Than US Issues Canadian High - Yield
Bonds Offer More Investor Protection Than US Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds Offer More Investor Protection Than US
Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian market: High Yield Insights for Canadian Inve
Bonds The following report summarizes how Moody's rates and analyzes nonfinancial speculative - grade issuers in the Canadian
market: High Yield Insights for Canadian Inv
market: High Yield Insights for Canadian Investors
But just to be sure, you might want to complete this 11 -
question risk tolerance - asset allocation questionnaire, which will suggest an appropriate stocks -
bonds mix based
on your answers and also show you how that mix as well as others have performed in the past over long stretches and in up and down
markets.
Based
on her
question, it sounds like the reader's 401 (k) is entirely invested in growth stocks, so it would be a great idea to move some of that money out — not into a money
market, but rather into
bonds.