How the Yield Curve Affects Your Investments
With all the turmoil in the bond market over the past week, even stock investors are starting to pay attention to bond prices and their impact on stocks. One key element of bond investing you need to know has to do with the yield curve.
In the following video, Fool contributor Dan Caplinger goes through the basics of what the yield curve is and why it's important. Dan identifies several different types of yield curves and explains which stocks tend to best under various bond-market conditions, noting that underestimating the impact of the yield curve on stocks can be a fatal mistake in your overall investing strategy.
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The article How the Yield Curve Affects Your Investments originally appeared on Fool.com.Fool contributor Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.