Blog RSS

The phrase “do not put all your eggs in one basket” could not be any truer for investments. A profitable investment portfolio is diversified.  While asset classes like stocks provide a high rate of return, they are highly volatile and subject to price changes due to economic cycles. Bonds, on the other hand, may have a lower rate of return, but they are less volatile, safe, and carry predictable income.  Most people understand how to choose the best stocks, such as looking at the trends in earnings growth and the price-earnings ratio. But few people know how to pick the...

Read more

“Never lose money.” These words by Warren Buffet are arguably one of the best pieces of advice an investor could follow.  Although investing is a risky affair, it pays to be sensible and careful. You should not approach investment with the attitude that you can win or lose. A smart investor will secure their capital first and then work on making a profit.  This is a conservative investment strategy known as capital preservation.   Here are three ways to preserve capital and prevent loss in your portfolio.  1. Diversify Your Portfolio With Bonds One of the easiest tricks to protect your...

Read more

Most people associate investments with high risk – a win or lose game. But it is possible to invest while preserving your capital and still make returns. The solution is investing in bonds.  A bond is a financial instrument that the government, companies, and other institutions use to obtain cash from investors in exchange for interest, which can be paid periodically. The bond comes with a defined period. After its maturity, the investor receives the original sum back.  Advantages of Bonds  Bonds come with a number of benefits that make them safe, especially for new investors or those unwilling to...

Read more

A fact about bonds is that although they carry very low levels of risk, their rate of return is low compared to other more volatile investment assets, such as stocks.  This means allocating your entire portfolio to bonds will lead to a very low rate of return. It is best to diversify your portfolio and include a variety of assets.   So how much exactly should you allocate to bonds? There is no one-size-fits-all approach. A number of factors will influence the amount of money to invest in bonds: Your age Your experience as an investor Your risk appetite Your investment...

Read more

You’re not sure what tomorrow holds. Crazy events are just too many. The pandemic has paralyzed so many things already. Besides that, you’ve seen protests, weird things that come with the elections…name it.  Right now, you know that to survive long-term, you need a predictable source of income fast. The great news is you can get started right away with bond trading, one of the safest ways to make money right now. And no, you don’t have to wait forever. You can get into the day bond trading market and keep earning daily from this lucrative venture.  Why should you...

Read more