In this week’s episode of State of the Market, Chief Income Strategist Marc Lichtenfeld shows you how you can invest in bonds with little risk of losing money.
But first, a quick bond primer!
Bonds are loans that are issued by governments, corporations and other institutions.
By buying a bond, you, the lender, get to collect interest. Then, at maturity, the borrower is legally obligated to return your principal investment back to you in full.
You can’t say the same for stocks. If a stock bottoms, there’s no way to be certain that you’ll ever get your money back. You could get left holding the bag.
Simply put, EVERYONE should own bonds and nobody should put their portfolios at risk by investing only in stocks.
But here’s where the FUN begins…
If you know what you’re doing, the total return on your bond investments can outperform those of stocks during turbulent markets like these.
That’s why, in this week’s episode, Marc shows you how to do the following:
- Boost your yields on bonds (yes, boost!)
- Get the most out of bonds’ defensive strengths
- Avoid unnecessary risk
- And more!