I’m sure you’ve heard of the Schwab trade-off. It’s the name for the trade-off between a stock price and the price of a bond. In other words, you must decide which of two options is the better one. You might think this sounds like a silly concept, but it’s actually quite important. Without the ability to consider the trade-off you would be stuck either with the stock price or the bond price, which is a risky decision.
The Schwab trader can use the stock value of the company to decide which of the two options they should trade. If the stock price is at a point, then a trade is made. If the price is too high, then the stock price is traded for the bond. If the price is too low, then the bond is traded for the stock.
One of the best things about trading stocks is that you can do it at the very same time you’re reading this. I’ve been wondering for years how it would feel to trade a stock in the middle of the night over the Internet and I finally have an answer that I like.
The stock is called Schwab, and the bond is called US Treasury Bond. If you are trading for the stock, then you are trading for the stock. If you are trading for the bond, then you are trading for the bond.
This is a great example of why the bond is the wrong currency for trading stocks. The bond is a currency, and for most of its history, it has been valued on the basis of the stock. If you were to buy a stock, then sell the bond, then buy the stock, you would make money. But the bond isn’t a currency; it can’t be bought and sold on the same exchange.
The bond has been and is very volatile. Bonds have very little intrinsic value because they are not backed by anything tangible. There are only two places to put them at today: the government or a bank. The government or a bank can easily be ruined.
In order to make bonds trading worth as much as the stock, companies are now allowing people to trade them. If you buy a bond at a low price and sell it at a high price, you make money. But it is difficult to know when to buy and when to sell. The bond is not an asset. It is an investment. One that is only worth what it can be bought and sold for and not where you can buy it and sell it.
Because bonds are not an asset, all of them are subject to the whims of the government. If the government decides to devalue the bond, all of the money spent on it will be thrown out. The government has said that some bonds are worthless and should be destroyed. So far in history, the only bonds that have actually been destroyed were those that traded like hotcakes. You can only trade bonds if they are traded at a premium and at a premium is in fact what the government wants.
The government wants to do away with the concept of exchange. I am not sure how it is that they can force the use of exchange, but you can’t make money by selling bonds. So no, I don’t think bonds are assets. I’m not sure if I can even pronounce “bonds,” but bonds don’t trade and you can’t make money by trading them.
I don’t think bonds trade at all. Bond prices are always frozen. Bonds are not actually traded on the markets. And they are not actually assets. They are the currency of the government, and they can only trade on the government’s behalf. So I dont think bonds are an asset. And I dont think they need to be traded to be an asset.