Find your mix of safe and risky bonds
Like many other investments, bonds also require investors to take greater risk for greater returns, and they can experience wide swings in price and yield.
See your bonds and bond funds react to rate moves
The pickings are growing increasingly slim for retirees looking to boost the income generated by their savings.To earn yields of 5% or more, investors—who once would have relied on the relative safety of bank certificates of deposit or ...
Apple is about to introduce a major financial innovation, issuing tranches of fixed-rate debt in three-, five-, 10- and 30-year durations, according to a regulatory filing from the company. But some investors — not to mention fanboys — may ...
Apple’s first bond sale in more than a decade is sure to get attention. But pros say most investors will want to stick with the stock.The maker of iPads, iPhones and Macbooks made headlines Tuesday saying it planned to sell $15 billion to ...
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Do municipal-bond funds make sense in retirement accounts?Most retirement savings are sheltered in individual retirement accounts, 401(k)s and other tax-deferred vehicles, so many people don't think of munis when they think of saving for ...
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Investing directly in property can be an attractive alternative to low-yielding bonds but isn't for everyone. Investors should know the real-estate market, be wary of what can go wrong and, because properties can be illiquid, have plenty of ...
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Worries that the economy will fall into recession are fading. Now, many investors are bracing for the day when interest rates start to rise, ending a three-decade-long bull market in bonds.
One of the most time-honored strategies in investing may have finally run its course.Generations of investors and financial advisers have relied on the so-called 60-40 asset allocation model, which calls for a portfolio with 60% invested in ...
NEW YORK (MarketWatch) — Enthusiasm for closed-end municipal bond funds, long a favorite of income-starved investors, is starting to wane.The funds, which use leverage to magnify yield, have been a go-to investment. But prices are down in ...
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Your investment portfolio already has stocks and bonds. Do you need to add commodities such as soybeans, copper and oil as well?Some experts argue that you should—and that this may be a good moment in which to make the move.
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High-yield bond prices are perched at record highs, but there are signs of trouble ahead.That means investors must keep a keen eye on the high-yield bond mutual funds they own—and should favor actively managed mutual funds over passively ...
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UNLESS YOU'VE somehow kept your wealth a secret, your financial adviser has probably already urged you to "add alternatives" to your portfolio, or simply "invest like Yale." But here's a comeback to use next time this topic comes up: Tell ...
MILAN—Investors hammered Italian stocks, bonds and government securities early Tuesday after the country's election produced an uncertain outcome, raising the prospect that Italians may have to return to the polls and sparking fears of a ...
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When you reach for yield, think about how far around the globe you should stretch.Lately, investors haven't been able to get enough emerging-market bonds, issued by governments and companies in dozens of countries in Latin America, Europe, ...
Despite several years’ worth of dire warnings from analysts about a bubble in the bond market, that asset class has continued to perform well. But investing pros say there’s reason to think this time the gloomy outlook may be for ...
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Low interest rates have undercut the appeal of certificates of deposit for years. Now, some fans of the plain-vanilla savings tools are turning to them as protection against the risk that rates will suddenly rise.
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With loans still hard to come by, wealthy investors are embracing a somewhat surprising and potentially risky strategy: pawning their stocks and bonds.
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Want to beat the Treasury market? Pay off your mortgage.Repaying a mortgage early offers, in essence, a risk-free return in the form of the interest saved. Nowadays anyone with a mortgage of 4% or 5% can earn more by repaying the loan than ...
Retirees trying to make their nest eggs last as long as they do may want to start paying more attention to the outlook for bonds and spend less time worrying about stocks.
Stocks are at record highs. The multi-decade bull market for bonds is likely over. But these days, even playing defense requires treading carefully.
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Safety has rarely been more expensive—or more dangerous.For the past five years, the Federal Reserve has pushed down the interest rates on traditionally safe assets such as Treasury bonds to near record lows, in hopes of sparking the ...
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Most investors use individual retirement accounts to buy stocks, bonds and mutual funds. Gordon Berger uses one to buy distressed homes and apartment buildings, which he fixes up and rents out.
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Frustrated with low-yielding bonds, some investors are pooling their money to make loans directly to companies.Their vehicle? So-called direct-lending funds, which make loans to midsize companies, typically those with revenue between $10 ...
The Federal Reserve on Wednesday said it will extend its bond-buying program into the new year in an effort to accelerate economic growth. But advisers say the action will also come with a downside for bond investors — fewer safe places to ...
Uncle Sam is pitching savings bonds as a good place to sock your tax refund, but financial advisers and other experts recommend thinking twice.
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Short-term bond funds are booming, but they aren't as safe as you might think.The actively managed mutual funds are generally considered less risky than other types of bond funds. That is because the short-term funds invest largely in ...
Most portfolio managers will tell you that high-yield bonds — corporate bonds issued by companies with relatively weak prospects or balance sheets - are “risky,” and that they should only make up a small percentage of a portfolio. Grandma, ...
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If you care about risk, not just return, you could be forgiven for just wanting to bury your money in your backyard.With bond prices near all-time highs and yields near record lows, the returns on many bonds are doomed to be negative after ...
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The most cited bullish argument these days, at least among the couple of hundred investment advisers I monitor, is that the stock market will "melt up" as investors sour on bonds and transfer the trillions they have in fixed-income mutual ...
The Federal Reserve last week pledged to keep interest rates low until the jobs picture improves massively.Sounds great, right? But not for investors searching for significant income. The Fed's decision to stay on its low-interest course ...
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If you invest in municipal bonds, it is time to pause, position your hands directly beneath you and sit on them. If you don't own munis, don't let yourself be stampeded into buying.

Ask the right questions before you hand over your money
A balanced portfolio can have a bigger impact on long-term performance than individual stock picking
Investing for retirement is more complicated than opening an IRA or maxing out your 401(k)
When choosing a stock mutual fund, consider performance, manager track record and cost before investing.
Even in times of interest rate uncertainty, a certificate of deposit (CD) can still be part of your cash strategy.