The saying, "Buy when there is blood in the streets, even if it is your own blood," is a powerful adage in the world of finance and investing. This statement, which is often attributed to the legendary British banker Baron Rothschild, encapsulates a contrarian approach to investing that can yield significant rewards when applied wisely. In the context of today's financial markets, this principle remains as relevant as ever.
High inflation and rapid interest rate increases caused stock and bond markets to decline in 2022. So, chances are that if you held bonds or stocks, or investments with exposure to these asset classes, for example, a...
Check the credit rating of the issuer of your bond before you buy
Higher risk bonds offer higher yields. These bonds are rated BB+ and below
Lower risk bonds offer lower yields. They are called “investment grade” and are rated “BBB-” and above....
Mar 24, 2003
The buying and selling of bonds can be a very simple and straightforward process, but there are a few features that must be understood regarding the calculations.
The face value of the bond can be considered the “principal” value of the loan. It is what the issuer will...
Mar 04, 2003
WHO INVESTS IN BONDS
Today we are going to look at the following two areas: Who are the people or institutions that usually invest in bonds; (and) What are their reasons for doing so?
First, however, we’ll do a quick recap of some of the basic facts about bonds. A bond is a form of I...
Feb 19, 2003
HOW RISKY ARE BONDS?
Last week we established that bonds are fixed interest investments that give higher returns than money market investments and individual investors or institutions that are looking for income and modest growth in the medium to long term investments would find them...
Feb 19, 2003