The Yield Curve Is Getting Flatter

The stock market endured a mini tantrum on Tuesday in response to a rise in bond yields. The Wall Street Journal described the 10-year Treasury note’s yield as experiencing its largest one-day increase since March 2017. The rise was big enough to cause the benchmark note to end the day with its highest yield in…

 

Why Buy Bonds If Interest Rates Will Rise?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:` Bond Pricing Made Simple Many investors know that a bondholder receives periodic interest payments from the bond issuer and that principal is usually not due until the bond matures. But when asked to explain the difference between coupon and yield, or what the risk of a…

 

Where Is the Bond Armageddon?

On Wednesday, The Wall Street Journal published an article headlined, “Rock-Bottom Bond Yields in Europe Hit All-Time Lows.” Thursday morning, a headline on The Financial Times’ website declared: “Relentless: Bund Yields Take Fresh Step Down.” The headlines were written in reaction to what is occurring in global bond markets. Earlier today, yields on the 10-year…

 

AAII Weekly Features: Finding Bargains Among Stocks With Falling Prices

This week’s AAII Weekly Features highlight these valuable AAII articles: The Model Shadow Stock Portfolio’s Long-Term Performance Understanding What Bond Market Liquidity Means for Your Portfolio Using Rational Value to Judge a Stock’s Worth Finding Bargains Among Stocks With Falling Stock Prices The featured AAII stock screen this week is the Zweig approach. Our Member…