Sentences with phrase «term bonds generally»

Yes this is possible in any given year, but over the longer term bonds generally return close to their yields.

Not exact matches

While I don't presume to read traders» (or trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper» of long term bond purchases will cause bond yields (the percent of interest paid on them) to rise.
On the other hand, if you'll need the money in just a few years — or if the prospect of losing money makes you too nervous — consider a higher allocation to generally less volatile investments such as bonds and short - term investments.
Generally, among asset classes, stocks are more volatile than bonds or short - term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.
These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.
A diverse mix of investments that fits your risk level and timeline: generally, heavier in stocks than bonds when you have a long - term horizon.
Interest - rate risk is generally greater for longer - term bonds, and credit risk is generally greater for below - investment - grade bonds, which may be considered speculative.
Short - term government bonds generally offer stability and low growth and are the bungee in your portfolio that slows its decline in value when equities plunge.
Generally, investing in a diversified mix of stock and bond funds or individual securities is an important part of successful long - term investing.
Commodity ETNs are generally taxed much like stock and bond ETNs, with the 23.8 % federal rate applying to long - term gains and the ordinary federal rate of up to 43.4 % applying to short - term gains.
Of course, you should still consider other traditional investment channels such as stocks and bonds as they are generally safer long - term investments considering the volatile nature of cryptocurrency.
Long - Term Interest Rates — The the value of government - issued bonds that gain maturity over a period of time, generally 10 years or more.
The term is generally reserved for complexes in which the metal ion is bound to two or more atoms of the chelating agent, although the bonds may be any combination of coordination or ionic bonds.
The people on these senior meeting sites are generally more mature in terms of relationships and are looking for deeper bonds than just physical or intimate relationships.
Wall Street has generally been reluctant to buy up debt from charter schools, at least in part over concerns that funding can fluctuate and that an authorizing agency could terminate an operating agreement without regard to the terms of a bond.
Managed futures as an asset class are historically non-correlated to the stock and bond markets over long term periods and encompass a wide range of trading strategies (generally taking long / short positions in futures contracts on equity indices, commodities, financials and currencies).
The mutual fund generally has a theme, such as «Index 500 Companies» or «Long - Term Insured Municipal Bonds
However, an aspect of leveraged loans that was not developed in this article is that the loans are secured by the assets of the operating company and the terms are usually superior to those of high - yield bonds, which are generally unsecured.
Company dividends — unlike bond interest — generally rise over time, giving dividend stocks far better long - term inflation protection than bonds.
Generally issued by blue - chip companies, they are shares that act like bonds, promising a set payout over a set term and usually varying little in price.
A 1 % rate increase will generally cause a loss of 10 % on a 10 - year bond and even bigger loses can arise on even longer term bonds, especially coupled with even higher interest rate increases.
Generally short term bonds are better than long if you expect rates to rise soon.
ETFs that track a stock or bond index are generally designed to be long - term investments, and it's important to treat them that way.
That's why, even though stocks have generally outperformed bonds over the long - term, some say a portfolio that is 100 - per - cent invested in GICs is the way to go.
Though they tend to lower bond prices in the short term, interest - rate hikes have generally led to higher fixed - income returns down the road for investors who have stayed the course.
Because cash is generally used as a short - term reserve, most investors develop an asset allocation strategy for their portfolios based primarily on the use of stocks and bonds.
On the other hand, if you'll need the money in just a few years — or if the prospect of losing money makes you too nervous — consider a higher allocation to generally less volatile investments, such as bonds and short - term investments.
Tight Money: When the Federal Reserve decides not to accumulate Treasury bonds as quickly, the result is a slowing of the growth in bank reserves, and generally an increase in the Federal Funds rate and short term lending rates.
A steepening yield curve (when the difference between short - term and long - term bond yields increases) is generally seen as favorable for the economy, suggesting healthier growth.
Bond investors identify a bond's value in terms of its yield, generally the coupon rate divided by the market prBond investors identify a bond's value in terms of its yield, generally the coupon rate divided by the market prbond's value in terms of its yield, generally the coupon rate divided by the market price.
Short - term capital gains, ordinary dividends, and interest income from most bonds are generally taxed at ordinary income tax rates, so those rates will change along with the new tax brackets (get details).
the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10 % coupon will pay $ 100 per $ 1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed - income search results pages, the term «Step - Up» instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step - Up will reveal the step - up schedule for that security
Interest - rate risk is generally greater for longer - term bonds, and credit risk is generally greater for below - investment - grade bonds.
Generally, the market interest rate for any particular term of bond is represented by the yields on government bonds, as these are viewed as highly liquid and of very low default risk.
Interest - rate risk is generally greater for longer - term bonds, and credit risk is greater for below - investment - grade bonds.
These reports generally show that the top - performing investment portfolios of the past couple of decades have included a high proportion of long - term bonds — 60 % or more.
While the term «substantially identical» has not been explicitly defined in this context, two bonds have generally not been considered substantially identical if (1) the securities have different issuers, or (2) there are substantial differences in either maturity or coupon rate.
Directs the investor's attention to the condition of the stock, bond, basic commodities, foreign stock, and U. S. dollar exchange markets over the longer term, generally up to six months and longer.
Covers the stock and bond markets over the short - term, generally over the next few weeks using standard technical indicators.
In addition, bonds with higher yields are generally less affected by movements in short - term interest rates.
Higher levels of risk are generally associated with longer - term bonds when interest rates are currently low and deemed likely to go up in the future, as well as low credit quality bonds.
Generally speaking the longer the term of a bond the greater the sensitivity that bond will have to the movement in interest rates, changes in the credit quality of a company or company risks associated with the business cycle of a specific company, sector or economy.
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Short Term National AMT - Free Municipal Bond index.
nce a bond fund is similar to a rolling bond ladder, a good direct CD generally has lower term risk than a bond fund.
Interest - rate risk is generally greater, however, for longer - term bonds and convertible securities whose underlying stock price has fallen significantly below the conversion price.
But 10 years after retirement, retirees with less remaining real wealth than the 2000 retiree faced much better market conditions in terms of lower cyclically - adjusted price - earnings ratios, higher dividend yields, and generally higher bond yields.
As stock investing generally requires a very detailed market study and is a very volatile investment in terms of return of investment, investors, especially the new investors out there are now turning to investing in bonds, as bond investments are safer than most of the other forms of investments and you need not constantly worry about prices going high or low.
While they are generally more inexpensive than their regular bond counterparts in terms of expense ratios due to their lower portfolio rebalancing and turnover, it is also true that they usually incur wider bid - ask spreads due to the low volumes triggered by the inactive trading thereby increasing the total cost of investments in them.
Bonds generally present less short - term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall), issuer default risk, issuer credit risk, liquidity risk and inflation risk.
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