Are bonds a safe investment? If you listen to the majority of the financial industry “experts”, they will tell you they are. In this week’s Mullooly Asset Management video Tom wants you to know that bonds might not be the safe investment you’ve been told they are. Tom shares a story from a fellow adviser. You can watch the video to hear for yourself, but the story is about people losing up to 50% in “ultra safe” bonds during the 1980s. So why are people still wondering, “Are bonds a safe investment?” today? Many people are unaware that bond prices can fluctuate greatly depending on interest rates. If you invest in a bond and interest rates go up, your bond is instantly worth less.
The main point behind this video is to answer the question, “Are bonds a safe investment?”. Well, the answer is maybe. You should obviously consult with your Investment Adviser before investing in anything. Tom really believes that if you are looking to make money in the long term, you should not be investing your money in bonds. Bonds are not growth investments, and they also aren’t as safe as many financial “experts” will have you believe. Watch this week’s video to learn more about bonds.