| Of course, there's no guarantee you'll get all of your money back, as the bond's price could fluctuate. But if you wait four weeks to get access to your funds, you are guaranteed to get all of your money back plus interest. For those who are comfortable making longer-term investments in order to obtain higher yields and potential capital gains, corporate bonds are a great choice. Right now, you can lock in a 5.4% yield on "A" rated corporate bonds for two years. These are extremely safe bonds. If you go down to "BBB-" rated bonds, which are still investment-grade and very safe, you can earn as much as 7.4%. And if you're willing to take on a bit more risk, you can earn more than 11% on some "BB-" rated bonds. (That's at the high end of the range, but it is available.) Plus, if economists and Wall Street are correct and the Fed lowers rates several times this year, bond prices will soar, because they move in the opposite direction of interest rates. Bonds are in a sweet spot right now. If rates don't move, bond investors will continue to receive their highest levels of interest in the past 15 years or so. And if rates fall, those higher yields will become even more valuable and bond prices will jump, offering the opportunity for even greater returns. Life has gotten pretty expensive in the past few years. Savers and investors need every dollar working hard for them. We're in a perfect environment for bonds to generate strong yields and potential profits. If you don't own any bonds, consider adding some to your portfolio today - whether they're short-term Treasurys or higher-yielding corporates. And if you want a chance to target 1,368% returns by this time next year, check out my new presentation on the special bond play that could help you capitalize on the Fed's latest interest rate "Super Spike." Good investing, Marc | 
Post a Comment
Post a Comment