Is it still time to get into bonds?
When the economy is on the up, bonds tend to fall in popularity because you can get far greater returns from other, albeit riskier, investments such as stocks and commodities.
But right now, as the country is in recession and heading for deflation – at least in the short term – then bonds are a lot more attractive. For one thing, they pay a fixed income which rises in value as returns on other assets, such as cash, decline. For another, they offer far greater security than investments such as shares (if, for example, a company goes bust, bondholders have a claim on the assets, ahead of shareholders).
Because spooked investors are selling off company debt indiscriminately, we believe that corporate bonds in particular offer some of the best value opportunities in the market today.
For a full explanation why now could be the perfect time for you to invest in bonds, as well as a comprehensive rundown of which bonds to buy and sell, get MoneyWeek magazine delivered to your door every week plus full access to all online content.
