This is a guest post from Troy who is starting an investing for beginners series and now his first series what are stocks and how to value them.
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This PBS American Experience television documentary notes that by 1929, Charles Mitchell, President of the National City Bank – which would later become Citibank – had popularized the idea of selling stock and high yield bonds directly to smaller investors. Until such time, the “everyday (or little) man” was really unaware of how the stock market functioned and had limited access to it.
A target maturity bond ETF offers some unique benefits that your typical bond funds don't, like having a maturity date on a diversified bond fund.
What many beginning bond investors don't fully realize, though, is the relationship between bond prices and bond yields. So what does that mean for you? It helps to understand how it works.
One of the more popular investment strategies during tough economic times is to turn to bonds.But before you decide to take the plunge with municipal bonds, make sure that you understand how they work, and the types of risks involved.