Sentences with phrase «return on the bond»

He says that if you can get only a 2 % return on bonds — rates we're seeing today — and 5.5 % yields on blue - chip stocks like BCE, it makes sense to overweight stocks, no matter what your age.

The lower the return on bonds, the more assets a fund needs to hold to ensure members can be paid off.

Should low returns on bonds and stocks persist, that would only exacerbate this trend.

-LSB-...] the long - term returns on bonds will certainly be lower than average based on the current yields.

On the other end of the investing spectrum, the average annual returns on bonds since 1926 was just 5.5 percent on average, with a 32.6 percent gain in the best year and an 8.1 percent loss in the worst, according to Vanguard data.

John Bogle at Vanguard wasn't engaging in market timing when he looked at the returns on stocks versus the returns on bonds during the dot - com bubble and decided that investors were faced with a once - in - a-lifetime mispricing event.

It's no fun to earn lower returns on bonds, but remember why you have them in your portfolio in the first place.

Thus fluctuations in interest rates will cause the total return on bonds to fluctuate, with long - term bonds fluctuating more than short - term bonds.

The longer the average maturity of the bond fund, the greater will be the variation in the return on the bond fund when interest rates change.

Chapter 6 — Bond Returns examines returns on bonds across 16 countries for 101 years from 1900 to 2000.

Even as you get older, you'll still want to hold some stocks to protect your wealth from inflation and lower returns on bonds.

In 5 of 16 countries, real returns on bonds were negative over the entire 101 years.

The worldwide average real return on bonds was 0.5 %, ranging from -2.2 % (Italy) to 2.8 % (Switzerland).

Unlike stocks whose values fluctuate from time to time, the returns on your bonds are almost always guaranteed and predictable.

The returns on bonds only look good with the benefit of hindsight and this will be true again the next time we get a stock market crash or prolonged bear market.

But a higher interest rate means that you could receive a higher return on your bond.

Investors are willing to accept lower returns on bonds in exchange for safety, but near - zero interest rate levels have traditional bondholders seeking yield elsewhere.

It measures what the return on a bond is if it is held to maturity and all coupons are reinvested at the YTM rate.

Though yield to maturity represents an annualized rate of return on a bond, coupon payments are often made on a semiannual basis, so YTM is often calculated on a six - month basis as well.

Please use «risk - adjusted returns» in the previous comment, re: returns on bonds.

The easiest way to check the total return on your bond fund is to simply visit its web page: published performance numbers always include both price changes and interest payments, which are assumed to be reinvested.

The total return on bonds consists of interest income plus or minus the change in price of the principal amount.

This makes the yield to maturity easier to calculate for zero coupon bonds, because there are no coupon payments to reinvest, making it equivalent to the normal rate of return on the bond.

But bear in mind that trading before your investment matures may affect the rate of return on your bond investment.

If the investor could only reinvest at 4 % (say, because market returns fell after the bonds were issued), the investor's actual return on the bond investment would be lower than expected.

«Risk - parity funds use leverage to try to increase returns on bond investments so they more closely resemble returns of stocks.

A specific bond's risk level is reflected in its yield, another name for return on a bond investment.

When compared to stocks, the rate of return on bonds and T - bills is very low.

In the long run, «interest on interest» accounts for the bulk of total return on a bond mutual fund.

You'll be trading in one low - risk investment — for another low - risk investment (a return on bonds or GICs for a paid off mortgage), so you won't be adding risk to your expected, future return.

Stocks have racked up hefty gains, while the lowest interest rates in a generation have meant paltry returns on bonds, cash accounts and other fixed - income investments.

Over 10 years, there should be no significant speculative return, so he pegs the annual total return on bonds at between 2 and 4 %.

Returns on bond investments is independent of the company's performance so the investors are looking at fixed returns during the investment term.

(No one knows where rates are headed, but it's absurd to expect 9 % or 10 % returns on bonds when yields are 1 % to 3 %.)

I've had good returns on bonds over the last year, largely because I invested in long deflation investment grade bonds.

The idea was that the certain return on stocks must be as higher than the return on bonds to justify the risk taken on because capital losses are as possible as capital gains.

However, over the long run, returns on bonds are less than the returns on equities.

They are buying more stocks, because the returns on bonds (as I've noted in these posts) are really dismal in a low interest rate world.

-- As I already mentioned, the expected future return on bonds is likely to be minimal at best, with the central tendency estimate at perhaps 2 % before inflation, and zero or less after inflation.

However, you can't dump your entire stock portfolio and just own bonds; the return on bonds is so low these days that you almost certainly won't be able to generate enough money to live on.

One direct lending fund returned 12.7 % last year; seen as alternative to measly returns on bonds.

Long - term stock market returns over 16 years: 3.57 % (the return on bonds was 5.26 %).

After all, if the return on bonds is low then domestic investors can be expected to buy stocks, pushing up their price.

Investors will expect a higher return on those bonds than they get today.

Not exact matches

If too much money is invested in safe, risk - free U.S. Treasury bonds, that basically insures a very low return on an investment.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

The Greek government might be preparing to return to the bond market but there are many structural problems that have yet to be resolved to make the economy more sustainable, an analyst told CNBC on Friday.

It's something you'll hear in your entry - level courses in finance or investing: Stocks on average return about 10 % a year, and bonds return about 5 %.

With bond yields globally in the dumps, Singapore's wealth fund GIC is looking at unconventional sources for fixed income returns, Liew Tzu Mi, GIC's chief investment officer for fixed income, said on Thursday.

The move is a novel way for the San Mateo, Calif., company to finance the enormous cost of installing panels on thousands of roofs — a typical residential system costs $ 25,000 — while appealing to retail investors who are on the hunt for better rates of return than they can find in savings accounts and government bonds.