For the average investor, the best way to invest in bonds is through institutional investment, which is to buy bonds**. Because compared to buying bonds in person, buying bonds** is much less risky. **Before investing, companies generally investigate the solvency and asset quality of the company, which is not possible for ordinary investors. Of course, if you have to buy bonds yourself, it is recommended that you buy triple-A bonds to prevent "thunder", at the cost of not having a very high yield.
During a monetary easing cycle, market interest rates usually fall sharply, and the bond market is bullish. In a bond bull market, many bonds** can yield more than 10% per annum. However, if there is a monetary tightening cycle, the market interest rate will rise rapidly, and the yield of bonds will deteriorate.
Investing in bonds is not like investing**, and you don't have to think too much about the "emotional" factor. Because the volatility of bonds is mainly affected by market interest rates, human behavior does not affect the bond market. The bonds** selected in the major rankings are trustworthy and can be purchased with confidence. And those **categories** on the list, it is recommended that it is best not to join in the fun.
Finally, I would like to share with you a few tips for investing in bonds:
When market interest rates rise, allocate more short-term bonds within 3 years;When market interest rates fall, allocate more long-term bonds for more than 5 years.
When the annualized yield of the bond has not outperformed the currency**, it is necessary to temporarily hedge the risk and reduce the proportion of the bond.
You don't have to predict when investing in bonds, just look at **. There is no need to panic even if there is a major incident, there is not much difference between operating a few days earlier and operating a few days later.
In addition to looking at the trend of market interest rates, investing in bonds can also look at "credit spreads". This indicator fluctuates almost in tandem with market interest rates, and is even more sensitive than market interest rates. Credit spreads are "the yield on 3-year 3-year 3A medium-term notes minus the yield on 3-year Treasury bonds", which is "the yield at risk minus the yield without risk". When credit spreads exceed 2%, it means that market interest rates may have peaked in the short term, and the bond bear market has come to an endWhen credit spreads are as low as 0Around 5%, it means that credit is extremely loose and the bond bull market has come to an end.