In the vast, complex world of investment, bonds often get sidelined. Yet, they are one of the most critical tools for any investor. Unlike cash, money markets, and certificates of deposit (CDs), bonds have a unique ability to increase in value during a recession. This characteristic makes them an essential part of any well-diversified portfolio. This article aims to shed light on the importance of bonds, their functioning, and their potential returns, especially during economic downturns.
Understanding bonds
To fully grasp the significance of bonds, one must first understand what they are and how they function. In essence, buying a bond is akin to lending money to a government or a
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