Many of us have heard of typical investment risks, such as market risks, liquidity risks, credit risks, and concentration risks. But what is reinvestment risk? In today’s episode, we’ll explain what reinvestment risk is and how the fear of recent events might be driving this risk.
Here’s some of what we discuss in this episode:
Don discusses the fees for credit transactions that are becoming more frequent. (2:56)
What is reinvestment risk? (5:27)
The two classes of CD and bond buyers right now. (13:26)
How bonds should act as a stabilizer in a portfolio. (15:01)
How rebalancing, patience, discipline and understanding play a huge part in a sound investment strategy. (18:53)