Market can go wrong at any point in time. It’s not just the stocks that can be as risky as possible but other investments like bonds too. When inflation rises and rates hike, the chances of bonds getting beaten up is inevitable. But is it just something you should consider to think that bond isn’t worth it anymore? Some investors like you may find it worthless to invest in bonds today because of this reason. If you want to be a good investor, you will not just focus on the wrong side of every investment. To give you ideas how bonds can make you money, here’s why you should invest in bonds.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
This is the most important reason why you should invest in bonds. Not all investors are confident to survive the volatility of the stock market. As we all know, market can go up and down anytime without a warning. Investors who don’t want getting bothered by constant changes in stock market go for bonds instead as they act as safeguard against the fluctuating stock market. Although bonds face downfalls too, when stocks are performing poorly, bonds are likely to do well. Just make sure you are diversifying your bond investments if you want to minimize the risk. Choose among better corporate and government bonds to start your investing in a right way.
No gain, no pain. That’s the most solid motto in life applicable to investors who don’t want pain but wanting higher yields from their investment. Again, investing is not a one time activity. It is a continuous action that needs effort and time. If you are to invest in bonds, remember that the risks you are about to experience are faced by all investors. You may realize it now or not but risks are just there lingering around and if you let yourself drown with a negative mindset, you will lose your investment.
Interest rates will definitely increase. We may not know when and how but it will happen as time passes by. If you trace back the interest rates offered by known issuers of bonds, you will find a high increment, from 3% to 7% or even higher. The only problem when it comes to investor mentality is they want a guarantee of instant high return without letting time do the work for them. Again, let time do the work for you if you want to become rich in 10-20 years.