Buying bonds? Your choices range from conservative to speculative
Abstract: While over long periods of time bonds historically have offered lower total returns than stocks, they can provide a reliable, steady income stream. What’s more, bond prices have often increased when stock prices have fallen, making them potentially useful for diversification purposes. This article discusses the pros and cons of the main categories of bonds, such as U.S. Treasuries, state and municipal bonds, corporate bonds, and international bonds. A sidebar looks at two primary avenues for investing in bonds: individual bonds, or a product that pools the capital of a group of investors, such as a bond mutual fund or an exchange-traded fund (ETF).