Tag archives: Junk Bonds

Why The U.S. Interest Rate Hike Worries Some Investors

Last update on Jan. 15, 2016.

Image credit: Creativa Images / Shutterstock.com

 

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll explain how some investors see higher U.S. interest rates affecting companies and the global economy, and how such effects could influence the price of stocks and bonds.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of December 2015 were as follows:

 Last MonthLast 12 MonthsSince Apr 2013
Slightly Aggressive ...

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The Perils Of Investing In High Yield Bond ETFs

Last update on June 4, 2015.

 

Suppose you're nearing retirement, and you're looking at some investment options. Because the memory of 2008 is still fresh in your mind, you feel nervous about investing in stocks. You look at Canadian government bond yields, and you shake your head - long term bonds barely yield 2.5%.

Can't you do better?

So you look around, and you come across ETFs that invest in high yield bonds. The interest on these ETFs is significantly higher than on government bonds, often offering above 4.5%. With these ETFs, you can finally enjoy the dual benefit of safety ...

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