Preferred Shares vs. Treasury Bonds: Profit from Their Inverse Relationship

Now is the perfect time to learn the relationship between preferred shares and treasury bonds.

In a volatile market filled with interest rate hikes, you will see the inverse relationship of many investment instruments.

Investors chase yield, and they look for it in the safest places first. One of the safest places is with the US government, in the form of treasury bonds.

When yields on bonds decrease, investors move to highly-rated preferred shares to get their fix of yield.

If you know where to look and when to buy, you can capture some of this back and forth. True investors can make money in any type of market. Good Luck!