Financial Markets Book Financial Markets For The Rest Of Us
An Easy Guide To Money, Bonds, Futures, Stocks, Options, And Mutual Funds
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by Robert Hashemian

Page 67

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.
Moderate - Moderately patient with some risk-tolerance. She is not expecting to get rich quickly, but does not wish to wait too long either. Investment terms are between one and ten years, depending on the type of investment.
Speculator - This is the risk-taker or even a gambler in its extreme cases. He will look for short-term investments that can yield large profits. He is prepared to lose some or all of his invested capital in return for big profit potential.

Now place yourself in one of the above categories and read below for the type of bond best suited for your type.

Conservative Investing

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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