Corporate Bonds, Duration and Inflation

There is a possible solution to the quandary of bond ownership and inflation. I refer you to my Earl J. Weinreb NewsHole® comments.

Most investors who look ahead many years, some as much as fifty, tend to overlook the principle of duration..

Overcoming inflation with the wise use of bonds concerns constant reinvestment in low-cost mutual funds or ETFs (Exchange Traded Funds).

The proper implementation of duration should suit the investor’s personal time horizon. That is, how long the bond fund will be held before the funds will be needed.

Corporate bonds can help overcome inflation and the dearth of income and potentially limited growth from stocks.

But be sure you invest in a low-cost bond mutual fund or ETF where interest earned is automatically reinvested in shares of the same fund each month.