Aside from stocks, bonds are the next asset class you should know. In fact, the global bond markets are even larger than the stock markets although the gap is closing in. Bonds, deemed as a lower-risk asset, are a form of debt and exhibit markedly different behavior from stocks. As a result, the two are often paired together to construct investment portfolios to achieve greater stability and resilience across different market conditions. Your traditional 60/40 portfolio is founded on this concept.
For those who are new to bonds, this introductory video will answer a few simple questions:
What are bonds?
Why are the different types of bonds?
Why invest in bonds?
What are the risks when you invest in bonds?
How do you invest in bonds?
I hope you learn something new from the video and all the best in your investing!
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