The New York Times has good article that explains the inverse relationship between bond prices and interest rates. It also points out that, with an expected rise in interest rates over the next few years, many investors who have moved their money to the "safety" of bonds, stand to lose as bond prices drop. The article also includes information (and a link) by Finra Investor Education Foundation about how little most people know about basic financial issues - like bond prices and interest rates. The report was based on questions, like in the quiz below. Take it yourself and find out how you do:
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