HOW TO INVEST MONEY

The recent drop in bond prices does not reflect any deterioration in their fundamental value. Instead, it stems from two key influences: first, a nationwide surge in business activity that has absorbed liquid capital and driven up interest rates; and second, an unfavorable supply-demand dynamic, with more bonds available than there is demand. This situation underscores a crucial consideration for investors: the need to preserve the stability of their invested capital. For those who prioritize avoiding any decline in quoted prices, real estate mortgages offer a superior choice—they are not publicly traded and thus immune to market fluctuations. However, when liquidity and flexibility are essential—especially for managing business reserves—short-term securities are a better fit, as their approaching maturity tends to stabilize their market value near par.