The conclusive advice of the book is that younger people should invest 60% of their portfolio in diversified stock index funds and 40% in Treasury bonds of 2 to 5 years maturity Older people should reverse the ratios Retirees should keep most of their portfolio in Treasury bonds.
I have given the book a mediocre rating for a number of reasons Significant parts of the book deal with US tax issues and US municipal bonds which are primarily of interest to US investors which I am not The concept of bond duration is poorly explained yet important in assessing future bond volatility Statements are often made without documentation in the form of data tables and plots The book is very repetitive even within the same page I think the book could be half as long yet contain the same material The Kindle tables are too small which is a typical Kindle problem.
PS This review is of the third edition.
Everything On Treasuries, Munis,bond Funds, And The Bond Buyer S Answer Book Updated For The New Economy As In The First Two Editions, This Third Edition Of The Bond Book Continues To Be The Idealreference For The Individual Investor It Has All The Necessary Details, Well Explained Andillustrated Without Excessive Mathematics In Addition To Providing This Essential Content, Itis Extremely Well Written James B Cloonan, Chairman, American Association Of Individual Investors Annette Thau Makes The Bond Market Interesting, Approachable, And Clear As Much Asinvestors Will Continue To Depend On Fixed Income Securities During Their Retirement Years,they Ll Need An Insightful Guide That Ensures They Re Appropriately Educated And Served The Bond Book Does Just That Jeff Tjornejoh, Research Director, US And Canada, Lipper, Thomson Reuters Not Only A Practical And Easy To Understand Guide For The Novice, But Also A Comprehensivereference For Professionals Annette Thau Provides The Steps To Climb To The Top Of The Bondinvestment Ladder The Bond Book Should Be A Permanent Fixture In Any Investment Library Thomas J Herzfeld, President, Thomas Herzfeld Advisors, Inc If The Financial Crisis Of Recent Years Has Taught Us Anything, It S Buyer Beware Fact Is, Bondscan Be Just As Risky As Stocks That S Why Annette Thau S New Edition Of The Bond Book Isessential Reading For Investors Who Want To Know Exactly What S In Their Portfolios It Alsoserves As An Excellent Guide For Those Of Us Who Are Getting Older And Need To Diversify Intofixed Income Jean Gruss, Southwest Florida Editor, Gulf Coast Business Review, Andformer Managing Editor, Kiplinger S Retirement ReportAbout The BookThe Financial Crisis Of Causedmajor Disruptions To Every Sector Ofthe Bond Market And Left Even The Savviestinvestors Confused About The Safety Oftheir Investments To Serve These Investors Andanyone Looking To Explore Opportunities Infixed Income Investing, Former Bond AnalystAnnette Thau Builds On The Features And Authoritythat Made The First Two Editions Bestsellersin The Thoroughly Revised, Updated, Andexpanded Third Edition Of The Bond BookThis Is A One Stop Resource For Both Seasonedbond Investors Looking For The Latest Informationon The Fixed Income Market And Equitiesinvestors Planning To Diversify Their HoldingsWriting In Plain English, Thau Presentscutting Edge Strategies For Making The Bestbond Investing Decisions, While Explaininghow To Assess Risks And Opportunities She Alsoincludes Up To Date Listings Of Online Resourceswith Bond Prices And Other InformationLook To This All In One Guide For Information Onsuch Critical Topics As Buying Individual Bonds Or Bond FundsThe Ins And Outs Of Open End Funds,closed End Funds, And Exchangetradedfunds ETFs The New Landscape For Municipal Bonds The Changed Rating Scales, The Neardemise Of Bond Insurance, AndBuild America Bonds BABs The Safest Bond FundsJunk Bonds And Emerging Market Bonds Buying Treasuries Without Payinga CommissionFrom How Bonds Work To How To Buy And Sellthem To What To Expect From Them, The BondBook, Third Edition, Is A Must read For Individualinvestors And Financial Advisers Who Wantto Enhance The Fixed Income Allocation Of Theirportfolios The bond market is complex but bonds should be a part of anyones investing strategy Annette Thau s book is an excellent comprehensive introduction to bond investing It will really help you make decisions about your bond investing and understand the historical context of current market movements which turns out to be very important in the bond market If you read any book read this one Don t be scared off by the 428 page size it is set up so that you can read whatever parts are useful to you Its organized in a clear and concise manner with clear detailed explanations of complex ideas The first hundred pages is the basics and is excellent The second hundred and sixty pages is about the individual types of bonds Then a section on bond funds followed by portfolio construction and asset allocation If there is any criticism I found this last section weak but this information can be better gained elsewhere.
I read what I believe was the first edition of this book quite a few years ago Oddly, I don t know what ever became of it.
I just finished reading the Kindle version of the current edition which served as a refresher of everything I ve learned about fixed income investing over the years.
While the book probably isn t for the professional , it will serve as a valuable tool for the beginning investor or anyone who wants to learn about fixed income investing.
This is not some rah, rah, rah, everything is fine book written by someone with a vested interest in getting investors to line up to buy the latest product Instead, it provides a very factual and candid explanation of just about every fixed income product an investor would want to buy.
and many that they should stay far away from.
This revised edition was written just after the 2008 financial crisis and gives quite a bit of background information as to its causes It should serve as a warning that what many always thought of as safe investments like money market funds and funds of U.
S Treasuries agencies have their own set of risks and aren t a guaranteed investment by any means.
Anyone interested in adding fixed income investments to their portfolios and that should include every investor should consider this required reading.
I hate to give a bad review to a product in which may not deserve it but this book simply wasn t for me I think the quality of the information is good if you are really interested in bonds you may very much like this book.
But for the average investor who is just looking at self educating himself without too much fuss I can t recommend this book I have bought and read a few other books based on investments such as the millionaire teacher, The RESP book by Mike Holman, Your life or your money and they were all interesting to read This is the first book in which I have not finished because I couldn t take it any 420 pages of bond talk is just too much for me, after 100 pages and a few skipped pages I decided to close the book and not look back at it.
If you are seriously interested in BONDS go ahead this book received excellent overall reviews on.
For the first time I am returning a book on
What s , there s horrendous errors in the text, so I can t help but feel that the author is just restating what others have said without actually being able to ensure that the facts stated are indeed correct.
For example, at Kindle location 668, the author states that a 4% bond needs to be repriced to 300 in a 10% market Now, I m no bond expert, but I d say that s got to be 400 Again, the author doesn t reveal how this was computed, so I have no idea who s correct.
At Kindle location 706, it is stated that 30.
9% of a 1,000 bond is 31 Umm, don t you mean 310 On location 849, it says only have only one rating At location 2680, it says rating scales, as noted in Chapter 3, rating scales in use At location 3722 But remember that that whatever At location 5076 interest rate risk A bond Hello, editor, still awake at this hour On top of that, the material is apparently dated, the text refers to the year 2009 regarding current events last updates seem to have been made in 2010 and warns that downloading a prospectus requires fast Internet delivery Don t try it with dial up Seriously, people still had dial up in 2010 The web sites referenced in the text are unsurprisingly no longer up to date either, investinginbonds.
com has 404 errors on some links and apparently no bond data any The site says Please be advised that, as of October 1, 2012, investinginbonds.
com will cease to provide certain bond pricing information currently available on this site.
, apparently two years after the last update of this book.
Looks like an update of this book is long overdue and someone needs to sit down and fix all the typos The content isn t that bad, there s good explanations of various bond related financial instruments and what to look out for when investing in them It also provides some interesting insights into the events the lead to the 2008 bond crisis, but it would be prudent to get an update of what happened to the bond market in the 6 years after, leading up to today, which is early 2014.