Treasuries are a very low-risk investment, but they're not risk-free. The U.S. government has to take on new debt so that it can afford to pay off old debts, such as maturing bonds. It's possible, at least in theory, that Congress could refuse to approve any new debt, triggering a default. Another risk, given the length of time you hold Treasury bonds, is inflation: If it's high enough, you may not keep up with inflation, i.e., you could end up cashing in a bond that has less purchasing power than the money you originally spent.
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Treasuries are a very low-risk investment, but they're not risk-free. The U.S. government has to take on new debt so that it can afford to pay off old debts, such as maturing bonds. It's possible, at least in theory, that Congress could refuse to approve any new debt, triggering a default. Another risk, given the length of time you hold Treasury bonds, is inflation: If it's high enough, you may not keep up with inflation, i.e., you could end up cashing in a bond that has less purchasing power than the money you originally spent.Sponsored links
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