Bond investing is not for the faint-hearted. Because of the myriad ways one can use – and misuse – bonds, buying them represents one of the most important caveat emptor scenarios in the world of investing.
Tag "3rd Deadly Sin"
Would there still be a “Modern Portfolio Theory” if the volatility of bonds today existed 50 years ago?
The two conducted simulations and discovered they can fully explain the Equity Premium Puzzle if investors look at their portfolios on an annual basis. Here’s how it works.
Why define bonds? A literary technique known as “foreshadowing” is when the author mentions a seemingly innocuous, indeed, if not out-of-place, fact that will have a major bearing in some future event in the plot.
Again, it comes down to a question of needs, costs and personal preferences. What’s more important: Avoiding bankruptcy and sharing control or increasing long-term profits and retaining control?
