Which Bonds to use as Invest Tool

Types of bonds as Invest Tool :

1. Invest Tool : Treasury Notes / Government Bonds

• return : low
• risk : low

2. Invest Tool : Corporate Bonds

• return : high
• risk : high

Conclusion : " high return, high risk " investing principle also applies for bond investing.

Which type of bond should we use as Invest Tool ?

This year, there are two problems in the US market, which are recession and credit crisis. If you think the problems are still exist, government bonds or Treasuries would be a good choice of bonds. But if you think the problems are over then Corporate bonds would be a good choice of bonds.

What is your view about recession and credit crisis ? are they over yet ? Ready to use Bond as your Invest Tool ? when is the perfect time for bond investing ? Invest Tool at http://investtool.blogspot.com/

Perfect Timing for Bond Investing ?

Is now a perfect time for bond investing ? the answer is it depends on your view about interest rate . Why ? because interest rate is an important factor to value a bond. Interest rate has negative correlation with bond 's value.

• if interest rate increases, bond price will decrease
• if interest rate decreases, bond price will increase

So if your view is interest rate would increase, so it is not the perfect time for bond investing, but if your view is interest rate would decrease, so now is the perfect time for bond investing.

So what is your view about interest rate ? going up or down ? http://investmenttool.blogspot.com/

Bond Investing

Bond Investing will provides information about Bonds as Invest Tool. In my view, we need to do Bond Investing to diversify our Invest Tool. Investment diversification is very important to :

• minimize investment risk
• optimize investment risk

Bond investing is included in fixed income investment because bonds have a contractual repayment schedule. By investing in bonds, we lend our money to the issuer, and for return, the issuer promises to make a periodic payments and give our money back at the end of the contract.

Besides Bond Investing, there are some type of Invest Tool, which are

• Business
• Stock market
• Internet
• Property

Invest Tool at http://investtool.blogspot.com/