Please welcome Paul Judd to the Trader's Blog stage where he will present to you a very interesting trick...BONDS ARE GOOD! Paul should know as he's dedicated the last 14 years to treasury bonds where he's learned the in's and out's that we should all take a look at! So please read the article below, visit Paul's Blog here, and let the comments fly!
I can take a position in the bond market prior to the release of an economic report. Once the report is released, I can close out my position and take profits. Cash is King!
Not so if you are a long-term investor in stocks.
A popular slogan used by many “salespeople” on Wall Street is to buy and hold for the long term. However, not only is your money tied up for years but also holding for the long term doesn’t necessarily mean you will make a profit.
For instance, if you had invested in the stock market in 1962 and held until 1982, you would have lost money.
The following are comparisons as to why trading bonds can be better than buying stocks: