These are some of the bonds offered in todaysmarkets. But are they as exciting as their names ? Certainly not - says Dr. Evil .
The truth about bonds is that they are there to help the company or the government raise money , for whatever purpose they need it (Usually to try and take over the world – Corporate Style)
So the government decides that they want to create a Space-Based Weapon System made out of Diamonds but lacks the money to do so, What do they do ? They ask people like you and me to give them money with a low yielding interest rate and in return they give you your money back when Mr. Bond matures...
That’s smart,you say ? thats right...
Well what about you? How much can you make from a bond ?
Usually about the 5% mark (obviously depending on how risky the investment is.)... ONLY 5% ?!
If its so low, why would anyone buy bonds you ask?
Well, the easy answer is that Investors who have savings would purchase these bonds to secure a stable income, especially when the interest rates drop below the offered bond interest rates.
This is a very good solution for the casual investor, who has more money than time to invest. Unless you have a lot of money and nothing to do with it or are looking to turn your thousands into millions, I suggest that you stick with Trading or Gooooold... And live to trade another day.
I look at bonds like any other instrument. However, I have only really traded T notes for some reason, just clearer set ups with better timing. I trade technically so for me its not necessary to know what happening