Why invest in bonds when there are so many other options? Essay

Why invest in coheres when there are so many other options? Since 1999, the economic system has been in a downward trend. The absolute majority of mountain who had invested in the stock market now known as the great stock bubble or fraud bubble were abandoned a false sense of security and they felt the market would tho keep climbing. Were there signs that investors could have looked for to predict the frugal downturn? If investors had looked for the signs, perchance they could have changed their direction of investment. This paper will investigate the characteristics of bonds and see if the bond market has proven to be a safe haven for those who were bright enough to invest in it. When the economy is in a downward trend why should more people invest in bonds? A good investment is a seasonably investment in which people change direction of their portfolio at the beginning of economic swings. The economists monitor timely reports and determine the direction of the economy by tracking ten economic indicators through a select group of economic categories employment, consumer spending, industrial merchandise and inflation (Updegrave, cardinal Indicators). Key items of the Employment Situation Summary think in on unemployment rate, tally of new jobs and help-wanted index. An increase in the number of new jobs and help wanted advertisements suggest a growing or stable economy. Unemployment rate tells the economists where the economy has been, whereas the number of new jobs predicts where the economy is liberation (Updegrave, p. 2). One important factor in the unemployment rate is that it tells the analyst that the economy has already changed. For example, an increase in the number of unemployed indicates that employers will not meet earnings or expect reduced earnin... ...Strategies. Third Edition. learner Hall, NJ, 1996. Noddings, Thomas. The Investors Guide to Convertible bring togethers. Dow Jones Irwin, Illinois, 1982. Bibliography Belkaoui, A hmed. Industrial Bonds and the Rating Process. Quorum Books, Westport, Connecticut, 1983. Fabozzi, Frank. Bond Markets, outline and Strategies. Third Edition. Prentice Hall, NJ, 1996. Noddings, Thomas. The Investors Guide to Convertible Bonds. Dow Jones Irwin, Illinois, 1982. Updegrave, Walter. The Economy Ten Indicators. CNN Money November 22, 2002 Veale, Stuart R. Bond Yield Analysis A Guide to Predicting Bond Returns. Prentice Hall, New York Institute of Finance, 1988. CNBC money. Questions and Answers, November 22, 2002.