Bond or CD...which is currently better to invest in for the next year?

Question

I am not asking about storcks, forex, or bullion... Just FIXED securities....

Answer 1

I think a CD would be best. At my firm, you would need to go to longer maturity or lower quality to get a substantially better rate on bonds. The only exception to this is Preferred stocks. These are some of the best fixed rate opportunities the markets have seen ever. The downside is the principal fluctuates and, there is no set maturity. Getting back to the CD, at my firm 6 months is going around 3.3% and one year could go as high as 3.9%. You'll want to stay within 1 year as the Fed is expected to raise rates at some point in the near future. Hope this helps