Posted To: MBS Commentary
Historically, any time we see the biggest bouts of selling in equities markets, a conversation about "safe-haven" assets is usually not far behind. The proverbial "flight to safety" is an integral part of many of the most unexpectedly resilient bond market rallies. It's really very simple. Here are a few core concepts: investors like earning a return on investment riskier investments yield greater potential returns and greater risk of loss if riskier investments are generally trending higher with an acceptable amount of volatility, investors will stay there if riskier investments get too volatile or begin losing too much ground, investors will seek shelter in safer-haven investments As you may have guessed, bond markets are indeed a safer haven investment. Of course...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/1PjXYak
No comments:
Post a Comment