Chuck Etzweiler on Radio
Talking interest rates
Significant pull back in the last quarter of 2018 that affected interest rates
All time high (3.23%) in october
went to 2.13%
looking at change in percentage that is insane
How does a bond appreciate?
it is like a teeter tatter
bond values go up and down based on the present of the bond
adjustments of the value of the bond are affected when it comes to interest rates in order to be competitive
Have to be VERY careful buying bonds right now
pretty risky buying bonds right now
Bonds can be more risky AND more volatile than stocks!
Strategies are changing to tend to peoples investing needs
What is the risk to someone if they own a bond that has a negative yield?
you’re buying a bond and you’re lending money, you’re actually going to get LESS back then you started with.
you’re paying someone for the bond
June 12, 2019