CDs are Better Than Bonds For Short-Term Investments

certificate-of-deposit

Certificate of Deposit yields are low, very low.  For locking up your money for 5 years, you will receive less than 2.0%.  It almost doesn’t seem worth it.  However, its important to understand that investing is about getting the best returns … [Read more...]

Everyone is Wrong: QE Does not Lower Interest Rates

interest rates

(September 2012) If you spend anytime reading or watching the mainstream media it has likely been pounded into your brain that quantitative easing (QE) lowers interest rates.  To be honest I hadn’t given the opposing view much thought until a couple … [Read more...]

Bill Gross channels John Bogle but is Wrong about CDs

bill gross

Bill Gross have you looked in the window of your local bank? In Bill Gross’s most recent market missive, “The Lending Lindy”, he makes the following statement: Most individual investors don’t have the privilege of time nor the choice of risking … [Read more...]

How to Gauge the Interest Rate Sensitivity of Bonds and Bond Funds

interest rates

By Matt Tucker, CFA iSharesBlog.com Today I want to take a step back from the markets and talk about one of the fundamental concepts in fixed income investing: interest rate sensitivity.  Namely, what happens to the price of a bond or bond fund … [Read more...]