Do any advisors in the financial planning community even conceptually understand what a long -
term bond bear market looks like these days?
Not exact matches
Intermediate -
term bonds were up an average of more than 7 percent, earning a spread of more than 37 percent in outperformance over stocks during a
bear market.
The following table shows how intermediate -
term bonds performed over these same
bear markets:
«Attachment» is the scientific
term for the emotional
bond in a relationship,
born out of Attachment Theory developed by the late psychologist - psychiatrist Dr. John Bowlby.
It should be noted that during a major
bear market or correction
bond funds, especially, short
term bond funds, are the ballast in your account and either stay the course or recover much quicker than the broader market as a whole.
The
term bonds refers to a wide range of freely tradable interest
bearing securities.
Since
bear markets can last 2 - 3 years, a 2 year Treasury
bond still counts as a «long
term»
bond in this situation.
Maintaining reserves in cash, cash equivalents (e.g., CDs) and short -
term bonds can help you withstand most
bear markets.
Corporate
bonds - long -
term debt issued by a corporation - are also interest
bearing.
The best choice is to direct her to funds that focus more on long -
term capital gains and avoid dividend stocks or interest -
bearing corporate
bonds.
Nevertheless, a sustained break above the 5.5 percent level on benchmark U.S. Treasury note yields would almost certainly signal the dawn of a long -
term bear market for
bonds, according to Louise Yamada, founder of Louise Yamada Technical Research Advisors LLC.
You can also consider buying a short
term Treasury
bond (e.g. a 2 year
bond) when you think a
bear market is imminent.
Like regular
bonds, medium
term notes are registered with the Securities and Exchange Commission (SEC) and are also usually issued as coupon -
bearing instruments.
A non-marketable, interest -
bearing U.S. government savings
bond that is guaranteed to at least double in value over the initial
term of the
bond, typically 20 years.
The contract between the issuer and the underwriter setting forth the
terms of the sale, including the price of the
bonds, the interest rate or rates which the
bonds are to
bear and the conditions to closing.
This is usually because your slice of the general account your tranche was invested in is permanently linked to the long -
term low - interest
bearing bonds that were actually bought.