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Asav Patel

Which are the Bonds to own in a Recession?

Recently I have posted the article,

Best Bonds to Own in Inflation

You first of all read this article. Because this is the answer of this question. Well, there are basically 2 types of bonds – Government Bonds & Corporate Bonds. You should check for 2 things before investing in any bonds during recession or even if it is not the recession.

01) Bond Rating &

02) Rate of Inflation.

Both of the above are the 2 basic factors that you should evaluate before investing in bonds. Weather you want to go for government bonds or you want to go for corporate bonds, the procedure is the same. You have to look for the above 2 criterias.

Recession is of 2 types – Inflationary & Deflationary. During the time of deflationary inflation (As that of great depression of 1929) it is advisable to invest in bonds while during the time of inflationary deflation (US Recession 2008), you should look for the rate of inflation and the return from bonds.

Anyway, so read the above article, it has all the basic information about Choosing best bonds…