170k views
0 votes
Why would a conservative investor invest in more short term bonds than long term bonds?

User Wqw
by
6.1k points

1 Answer

5 votes
A conservative investor invests in more short term bonds than long term bonds because they believe long term bonds are not efficient.
Some investors think that bonds are “safe,” , stocks are “risky”.

Short-term bonds on the other hand, seems to be attractive to many investors, specifically the conservative ones because they don't require you to tie up your money for long.
User Jdessey
by
5.7k points