Why All Americans Should Be Investing In Bonds




Bonds are some of the most neglected investments in the world by retail investors right now due to relatively low yields. Many investors feel that it’s better to take their chances with stocks, real estate, or some other investment class. But, the thing to keep in mind is that the returns of every investment are directly correlated to its risk. And while bond yields may be low in comparison to stock returns, bonds are also significantly safer. If you’re investing in US treasury bonds, one could say that you have locked in “risk-free” returns given that the US can simply print money to pay you back. Aside from an extraordinary amount of safety and stability, many bonds also payout high yields. For example, I-series bonds from the US government are specifically designed to produce a yield even after inflation. And given how high inflation is right now, the yield on I series bonds is nearly 10%. This is perfect for saving up for a large purchase or even just using an emergency fund. This video explains the various benefits of bonds and why more investors should take bonds seriously.

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Timestamps:
0:00 – Bonds
1:14 – Bonds Explained
3:09 – Security
5:11 – Yield
7:10 – Use Cases
9:33 – Opposition Explained

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