BWFA has been underweighting allocations to bonds and other interest-rate-sensitive investments, given that many of these choices pay very little, and there is a risk to principle eroding, if interest rates go up. Bonds may not be as glamorous as stocks or commodities, but they could be a component of some investment portfolios. Bonds are […]
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Bonds, Interest Rates, and the Impact of Inflation
There are two fundamental ways that you can profit from owning bonds: from the interest that bonds pay, or from any increase in the bond’s price. Many people who invest in bonds because they want a steady stream of income are surprised to learn that bond prices can fluctuate, just as they do with any […]
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Interest Rates Rising… What About the Stock Market?
• What is the relationship between interest rates and the stock market? • Can stocks rise in a rising interest rate environment? • Do interest rates impact all stocks the same? Logic, and recent stock market volatility, would seem to suggest an inverse relationship between interest rates and stock valuations. Interest rates have been low […]