📉 RISKS OF INVESTING IN BONDS 💸

Bonds may be safer than stocks, but they’re not risk-free. Before you buy, know what could go wrong: 1️⃣ Interest Rate Risk – When rates rise, bond prices fall. Longer durations = bigger impact. 2️⃣ Credit Risk – If the issuer defaults, you may lose your money. High yield = high risk. 3️⃣ Inflation Risk – Rising inflation eats into your returns, especially on fixed-rate bonds. 4️⃣ Liquidity Risk – Some bonds are tough to sell without a loss. 5️⃣ Reinvestment Risk – When rates drop, reinvesting coupons at lower yields hurts returns. 📊 Bonds are a key part of a diversified portfolio—but understanding the risks helps you invest smarter.