Financial Markets For The Rest Of Us|
An Easy Guide To Money, Bonds, Futures, Stocks, Options, And Mutual Funds
Conservative - This is a patient person investing for the long haul,
at least a decade.He would buy carefully and sell reluctantly.He will not
engage in risky investments, only quality ones.
Now place yourself in one of the above categories and read below for the type of bond best suited for your type.
The first type of bond that comes to mind for the conservative investor is the long bond and its zero coupon variations. You can't find a safer bond than the Treasury bond. Since the conservative investor is a long haul investor, trading bonds doesn't enter the picture here, so the plan would be to hold the bond until maturity. Of course, if the market offers a high price on the bonds, the investor may consider selling them but becoming an active bond trader would be out of the question.
Other AAA rated bonds are also equally attractive for a conservative portfolio. For example, corporate bonds issued by long-standing and reputable corporations can certainly produce more attractive returns than that of the long bond, with minimal risk of default. Savings bonds also offer a great deal of security and peace of mind, however, their returns have been relatively meager. Nevertheless, savings bonds are a great supplement to a conservative bond strategy, and it may be useful …
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