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The first thing that comes to
most people's minds when they think of investing is the stock market. After
all, stocks are exciting. The swings in the market are scrutinized in the
newspapers and even covered by local evening newscasts. Stories of investors
gaining great wealth in the stock market are common.
Bonds, on the other hand,
don't have the same sex appeal. The lingo seems arcane and confusing to the
average person. Plus, bonds are much more boring - especially during raging
bull markets, when they seem to offer an insignificant return compared to
stocks. However, all it takes is a bear market to remind investors of the
virtues of a bond's safety and stability. In fact, for many investors it
makes sense to have at least part of their portfolio invested in bonds.
This guide will hopefully
help you determine whether or not bonds are right for you. We'll introduce
you to the fundamentals of what bonds are, the different types of bonds and
their important characteristics, how they behave, how to purchase them, and
more.
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