The Risks of High Yielding Investments

The following is a guest post from Ben Carlson at A Wealth of Common Sense. Ben writes about personal finance, investments, investor psychology and using your common sense to manage your money.  You can follow him on Twitter (@awealthofcs). If you missed part one of my series on rising interest rates, please read What Happens to Bonds When Interest Rates Rise. Rising Interest Rates Rising interest rates are a hot topic in the ever changing investment landscape these days.  Historically low rates ...

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Bond Certificate

What Happens to Bonds When Interest Rates Rise?

The following is a guest post from Ben Carlson at A Wealth of Common Sense.  Ben writes about personal finance, investments, investor psychology and using your common sense to manage your money.  You can also  follow him on Twitter (@awealthofcs). Don’t Try to Predict Interest Rate Movements There is one recommendation that I received early in my wealth management career that has served me well: do not try to predict interest rates.  There are way too many moving parts involved.  To predict ...

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Bond Certificate

Dividend Stocks are Not a Bond Substitute

The following is a guest post by Ben Carlson from A Wealth of Common Sense “Compare this with a 50% drawdown in stocks in the past bear market and you can see that bonds and stocks do not have the same characteristics for loss.  Interest rates would really need to spike higher in a very short period of time to equal stock losses.  And unfortunately, rates can stay low for long periods of time.” Introduction With interest rates at generational lows, investors are in search of yield.  ...

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XBB vs XSB Annual Returns

XBB vs. XSB

Written by Vicky at Vix Money. I personally hold both XBB and XSB (I told you my portfolio is messy!), and I am curious to see how they stack up against each other. XSB, iShares DEX Short Term Bond Index Fund, seeks to replicate the performance of the DEX Short Term Bond Index. It was introduced on November 20, 2000, and holds bonds that are issued domestically in Canada by all levels of government (federal, provincial and municipal) as well as corporate bonds. The main difference between XSB and ...

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