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 pr
Bond investors identify a
bond's value in terms of its yield, generally the coupon rate divided by the market pr
bond'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.