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Tuesday, November 13, 2012
You come to understand that most bonds trade over-the-counter, which is very different from the way common stocks trade.
I know all of this because I meet with clones of you. I also read the financial press and ponder the ongoing national angst over flows into bond funds despite historically anemic yields.
I stress to new clients that bonds are an important part of the drive towards a successful retirement. I stress the need to seriously think about the role of bonds in your portfolio - especially in today's world of excrutiatingly low yields. I explain the different parts of the bond market - corporates, mortgage-backeds, Treasuries, etc.
And I see eyes glaze over, and that's when I pull back a bit.
What you don't see so much is that I am constantly on the lookout for resources that do a good job explaining how bonds work. Every such resource makes my job easier. Books are a good resource; but, in today's markets, they become dated pretty quickly. This is one area where the internet has, IMHO, a distinct advantage.
A really good site I have recently come across and recommend is learnbonds.com. This site offers basic instruction on buying bonds and covers, as far as I can see, all of the main topics that bond investors are concerned with, including issues of the day. In addition, it also has numerous instructional videos.
I believe that, if you visit the site and putter around a bit, you will return regularly just to keep up with the market.
Posted by Robert Wasilewski at 9:17 PM