Bonds can provide stability in a volatile market from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
In turbulent times, it can be difficult to find an investment that offers stability. However, bonds have long been recognized as a safe haven in times of market volatility. When the stock market is experiencing wild swings, bonds can provide a sense of security and predictability. The reason for this stability lies in the nature of bonds themselves. Unlike stocks, which represent ownership in a company and are subject to the whims of the market, bonds are essentially loans made by investors to governments or corporations. In return for this loan, the issuer of the bond promises to pay back the principal amount plus interest at a specified date in the future. This fixed-income nature of bonds means that investors can rely on a steady stream of income regardless of market conditions. Even if the stock market is in turmoil, bondholders can still co...Similar Posts
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