Why should anyone invest in the bond market?

Bond market
Why should anyone invest in the bond market?

The Bond market is the largest market in the world that is generally classified into the Government & Agency bonds, Corporate bonds, Mortgage-backed bonds, Municipal bonds, Asset-backed bonds and collateralized debt obligations. They do not get much attention among most investors as the stock market does. But they do play a vital role in balancing investment portfolios.

If we look at the statistics, the US bond market is larger than the stock market, and the bond market has largely been dominated by the United States, which accounts for almost 44% of the market.

In one way, bond markets are the backbone of any economy. They provide enough liquid cash for the companies to grow which in turn leads to the development of the economy.

As the government often requires money to invest in new projects, they borrow it through selling bonds. Usually, investors are quite happy to buy these bonds as they are seen as a safe investment option since government usually don’t default and investors get a guaranteed rate of interest in return.

Also, looking at the general trend, those who want to make money within a short-period of time, they end up investing their hard-earned money in stocks without looking at the risk factor, where as those who prefer to be on a safer side, and have a guaranteed return, expected in a specific time, they prefer to invest in bonds as an alternative way of income.

But why should you invest in the bond market?

After looking at the general trend and by knowing the importance of the US bond market, here are some quick points on why should you invest in bonds:

  1. 1. They are considered to be the backbone to financial markets all over the world.
  2. 2. They are fixed income instruments which offer you regular cash flow and helps in income generation.
  3. 3. They are the safe investment choice when diversifying your portfolio.
  4. 4. They are mostly stable and less likely to be default by the issuer and protect against volatility.

Any seasoned investor has a good understanding of the benefits and advantages of buying bonds, but does that mean they are always ready to do so? Maybe not, because in this fast-paced growing economy, we all have to keep up with constant changing trends, new technologies and always, I repeat, always keeping track of RISKS. In this case, keep special attention to interest rate risks.

So, what could differentiate you from an average investor is to be better-informed and equipped with tools and data. For which you should have access to:

  1. 1. An investment tool.
  2. 2. Transparent bond market information and
  3. 3. The right coaching and guidance on how to make better investment decisions.

By keeping all these things in mind, take a look at what Jim Koetting decided to develop as his flagship user-friendly investment tool called the “Bond Price validation tool” or “the BPV tool” which gives you an immediate access to transparent bond market information along with the right coaching and guidance to every fiduciary out there; which means that even for experts investors, there will always be an extra assistance they could use in order to keep up with all of their other financial duties while relying on someone who keeps up-to-date technology to service you when investing in the bond market.

The BPV tool is so simple that the moment its users enter any CUSIP id their screens will display every key features and variable pertaining to that security. This helps investors to overview the description of the bond they are validating though our solution, and finding every single CUSIP available with up to date data like quantifiable risks, historical price charts, and real market pricing.

Sounds interesting? Why don’t you see it for yourself at https://pfitr.com/try-demo/

Apart from developing the “BPV tool” you will be provided with other solutions to be transparent with the reporting of your investments and guidance on the best investment purchases available.

Want to know more about PFITR and its services? Please write an email to us at info@pfitr.com or call us at 1-800-921-1992.

We would love to hear from you!

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