|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
How Bond Funds Can Burn You |
The Motley Fool - July 8, 2010 - By Dan Caplinger
When times get tough, investors always look for safe investments. Yet while bonds have a reputation for being conservative, you shouldn't see them as a no-lose proposition.
The easy way to diversify
When assembling a diversified portfolio, many investors believe they must decide between two types of assets: stocks and bonds. They see stocks as the risky choice, subject to the whims of the overall market. In contrast, bonds seem secure and solid, apt to hold up well even when the stock market is plummeting.
Certainly, bonds have been the place to be so far this year, while stocks have faltered. But drawing the conclusion that bonds are always safer than stocks is dangerously simplistic. Bond funds have plenty of risk, and if you're not prepared for what could happen to your bond investments, you could be in for a nasty shock.
The many risks of bonds
Everything's been going right for bonds lately, but when the tide turns, plenty of things can go wrong.
The biggest risk for bonds comes when interest rates rise. Whether you own Treasuries or any other kind of bond, higher rates hurt the value the existing bonds that funds own. The iShares Barclays 20+ Year Treasury ETF (NYSE: TLT), which focuses on long-term Treasury bonds, is highly vulnerable to the adverse impact of rate hikes. But even the short-term iShares Barclays 1-3 Year Treasury (NYSE: SHY) could take a big hit in a rising-rate environment, especially with its current yield at just 0.54%.
A related risk comes from potential inflation. When you buy traditional bond funds that invest in fixed-rate bonds, you're hoping that low inflation will eat away as little of the purchasing power of your investment as possible. If you're interested in protecting against inflation, iShares Barclays TIPS Bond (NYSE: TIP) and its international equivalent, SPDR DB International Government Inflation Protected Bond (NYSE: WIP), hold bonds that are indexed to inflation. But bear in mind that even these funds aren't protected from rate risk entirely -- just from inflation in particular.
For the complete article visit The Motley Fool
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
