The dangerous game you play with bonds

In a downturn, bonds can look like a good investment. Unlike dividends, companies can't weasel out of paying you or trim your returns. But beware, bonds aren't always what they seem. Here, Bengt Saelensminde tells you what to look out for when investing in bonds.

Today, I want to pick up on a thought thrown up from Monday's article. It set me on a bit of a research mission and what cropped up is of great importance to anyone investing in equities and bonds.

What's best: equities or bonds?

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Dividend20.421.98.726.58.5
Dividend10.411.915.115.86.56.9
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31/3/1219,668.202,256.2221.99p8.91.9+5%8.48p4.3%
31/3/1319,566.852,382.4323.42p8.41.3+6%9.97p5.0%

Bengt graduated from Reading University in 1994 and followed up with a master's degree in business economics.

 

He started stock market investing at the age of 13, and this eventually led to a job in the City of London in 1995. He started on a bond desk at Cantor Fitzgerald and ended up running a desk at stockbroker's Cazenove.

 

Bengt left the City in 2000 to start up his own import and beauty products business which he still runs today.