Almost every corporation and government in the world issues bonds. The bond market dwarfs the stock market, when measured in dollar volume. In addition, while stocks are issued solely in the private sector, both corporations and governments can issue bonds. For governments, issuing bonds or other similar securities is the only way they can borrow money.
Yet most people, including investors and traders, often don’t know much about bonds, and to complicate things more, bonds come in a multitude of often confusing types.
If you’ve thought about investing in bonds or are just curious about them, Bonds: The Unbeaten Path to Secure Investment Growth provides a clear explanation about how the various types of bonds work, what to invest in, and what to avoid.
Their somewhat controversial thesis is that a 100% bond portfolio is less risky and ultimately more profitable than stocks. They do repeatedly say they are talking about “plain vanilla” bonds, not high risk corporate debt or mortgage-backed securities, advising that investors buy such bonds and hold them to maturity.
The bond market has a huge if sometimes indirect effect on the stock market and interest rates. It’s finally dawned on me that to really understand the financial crisis we are in, you need to understand bonds. This book helps do that, and also details a logical, well-thought-out method to make money by buying and holding them long-term.