Investing Basics: Bonds
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- Опубліковано 2 лис 2023
- Bonds are one of the most common investments, but to many investors, they're still a mystery. In this video, you'll learn the basics of bonds and how investors might use them to preserve capital and pursue extra income.
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And for anyone who watched 'The Big Short' will know just how HONEST those Rating Agencies are!!
Thank you for bringing this back. It's very useful.
A very good introduction of bonds
2% interest, that investor got hosed!
I don't know much about bonds but someone in my family is sending me a bond of $35000 USD with 4% interest (semi-annually). Is this good?
@@ALeaud Yess, that's a really good investment.
@@ALeauddepends on if it’s a corporate bond (high risk) or government bond (low risk).
@@stefandomeier1911 It's a corporate bond from Toyota in Japan.
it's a low interest rate i think
Knowledge supports growth.
So cool! It's really good explained ❤
very useful,thanks for your content, it helps me in my school subjects very much !
Glad to hear that! ^CH
Viewed. Thanks.
ing your knowledge with us. You're a true inspiration!arI can't thank you enough for sha
charles schwab over here
And after 10 years your initial $1,000 is worth much less due to inflation, which was much higher than the 2% interest you earned, so it was a good investment for the city but NOT a good investment for the investor!
Yeah, I started looking into long term investing a couple weeks back (am 27, It's time to have investments in something else than crypto and be a grown up man lol) and I hear about bonds everywhere....it just doesn't make any sense to me.
Yes, you can lose 50% of the value of your portfolio overnight if you just invest in stocks but you can invest in stocks paying out dividends so while you are waiting for the market to recover you would still have regular income...or you can literally take out mortgage for an apartment building, rent the units and still make money while paying it off from the rent you get...and if you pick nice location you can sell the building after 20-30 years for so much more that the net gain will be bigger than the inflation after those 20 years.
Or....I mean....if the only thing you want is to keep your money and not lose through periods of inflation while not moving a finger then you are still better off buying precious metals ...the price of gold went up ONLY 300% in the last 20 years so inflation would drive it down to like 50-70% gain
in 20y but it is still better than losing 5% of value of your money every single year by having just 2% interest rate on your bond....
It just doesn't make any sense to me no matter how much I try to spin it
3:33 so why did the investor go for the 5% interest assuming both the bonds are at the same value. I thought higher interest rates would lower the value of the bond in the future?. Shouldn’t he have stayed on the 2% first?
Hello, we appreciate that you reached out! Please send us a private/direct message for additional direction. You can contact us at 1-800-435-4000, or log in to Schwab.com to initiate a secure chat for assistance. Representatives are available 24/7. Thank you! ^CH
0:00-3:18
my man got scammed. 200 for 10 years 💀
Now imagine getting a loan for 1mil and putting it straight in a bond.Give da bank back the Million and interest.You keep the change and put a down payment on 3 houses.Than put those 3 houses as collateral for 3-4 million and repeat
@@MOthePYROI’m confused
@@MOthePYROhow are you gonna pay the bank 1 million if you if you gave them the million
@@MOthePYROthe bank will have to be paid interest on the million
So "interest risk" is really just an opportunity cost and not an actual loss?
Until realized. ^BW
Stocks and bonds are great investments I made a fortune
Might not be so bad if you weren't expecting the government to print a trillion dollars a quarter to contribute to inflation and your loses holding there unaccountable mismanagement of that system.
WOW! 2 % where do I send my money?
How many do you have
Huh?
huh?
Minimun bond purchase in Schwab is $1.0M what a joke!
Incorrect
Invest in yourself before you invest in bonds.
What a roast!! 😅