The other half of a portfolio
For someone who owns stock funds and is unsure what bonds are for.
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- Step 16 min
Inflation: the quiet subtractionA number that grows can still buy less. Real return is what you earned minus what prices did, and the arithmetic is slightly less obvious than subtraction.
- Step 211 min
Bonds and Treasuries: lending money, with a price that movesA bond is a loan you make. The interest is fixed, the price is not, and the relationship between the two confuses nearly everyone the first time.
- Step 38 min
Spreading it out and betting big: what each one protects you fromOwning many things removes one kind of risk and leaves another one completely untouched. Knowing which is which keeps the word from turning into a slogan.
Progress is kept with the rest of your place. A path is a suggested order, not a curriculum you must finish.