Benefits and Risks Associated with Bonds
While bonds traditionally earn lower returns than stocks, that does not mean there isn't a place in your portfolio for bonds. The most common reason for investors to purchase bonds are below:Bonds are often called "fixed income" investments, but don't let that term fool you. Bonds are not riskless investments. While they are usually considered much safer than stocks, bonds can still lose value while you hold them. Here is a brief look at some of the risks associated with bonds:
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