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This Week: Investing in Bonds Versus Stocks

by AAII Staff | April 03, 2019


Using Bonds Instead of Stocks for Portfolio Income

Maximizing consistent and predictable cash flow is key for meeting retirement objectives. By taking a savvy approach to bond buying, you can minimize your taxes, limit your expenses, reduce your risk and increase your predictable cash flow. Municipal bonds can help investors accomplish this. More »

Will Stocks Always Outperform Bonds Over a Multi-Year Period?

Investors price stocks for higher return because of their higher risk and dividend growth, but downturns can make bonds more favorable because of their contractual payments. But will equity always outperform bonds in the long run? Brian Haughey dives into Professor Edward McQuarrie’s research to look at prolonged periods during which bonds outperformed. More »
		Brian Haughey, CFA, FRM, CAIA


Interest Rate Sensitivity and Bond Pricing

How can it be that there are times when “safe” assets such as high-quality corporate bonds or U.S. Treasuries exhibit levels of price volatility that may normally be associated with the stock market? This article outlines a set of easy-to-calculate formulas that could reveal how much a bond’s price will change in reaction to an increase or decrease in yield. More »


Interaction of Dividend Yield and Growth on the Payback Period

The payback period is a measure of how long it will take the annual dividends per share to pay back the original investment. The faster the payback, the better, assuming risk levels among your alternatives are equal. More »

Member Question
With the first quarter behind us, what is your 2019 performance prediction for the S&P 500 index?
A) Up more than 20%
B) Up between 11% and 20%
C) Up between 6% and 10%
D) In a range from down 5% to up 5%
E) Down between 6% and 10%
F) Down between 11% and 20%
G) Down more than 20%

Be sure to vote on this week’s question for the opportunity to offer your insights on our open-ended question.

Previous Week’s Results
Is/was your college major related to your career?

Yes : 73%

No : 27%

Poll results are as of 9 a.m. (Central) on Monday. 1,959 respondents.

AAII Survey: Did Your Career Match Your College Degree?

		This week marked my 22nd anniversary at AAII. I started working here even before I graduated college, where I studied finance. Many people end up in careers far different than what they studied for. To get an idea of whether this is the case for our readers, our latest reader survey asked whether careers were related to college majors. We then followed up with a special question that asked what led our readers down a different career path. More »

AAII Bond Investing Resources

		Think of the bond market as a mystery wrapped in an enigma? You are not alone. But AAII offers a collection of resources to help you navigate the bond analysis, selection and purchasing process. More »

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