Bonds don’t usually offer the same levels of long-term growth as the best stocks, but bonds are supposed to be relatively “safe” fixed-income investments.
As you get closer to retirement, conventional wisdom says that most people should have a larger portion of their portfolio invested in bonds
Unfortunately, right now is a complicated time to buy bonds. There’s a lot of uncertainty among bond investors about stubborn inflation, high energy prices, and global turmoil from the Iran conflict, all of which could lead to interest rate hikes from the Fed. Some bond investors also share the concerns that JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon expressed recently in an interview, where he said that high levels of U.S. government debt could drive long-term U.S.
Treasury bond yields higher (and bond prices lower). If interest rates go higher in the future, that could make bonds, especially longer-term bonds, a risky bet today. Missed Nvidia in 2009?