Are Geothermal stocks a good long term investment??

Are long-term corporate bonds a good investment at this time, considering the anticipated >10% correction in stocks that may begin this month?

• I'm investing non-essential funds and my IRA is safely tucked away until my retirement in 8 years. I'm specifically considering long term corporate bond ETFs, such as LWC and VCLT. My risk appetite is low to medium.Thanks!

• Answer:

  First, you need to look at the bonds themselves. Second, lots of people anticipate a lot of different things that the stock market should do. They have a truly stunning record of being wrong more times than would seem possible. I'll do my best... Interest rate risk, credit risk, what the specific companies whose bonds you are considering have as their business model. Don't look at it as, because the stock market is going to "whatever". That is the wrong starting point. In any case, interest rates are a major risk factor. I noticed you said that you are using non-essential funds. What sort of risk profile do you have for the money? If it is really a small amount and you are willing to take a larger amount of risk, I'd say junk bonds are not worth it. The yields are too low (I think). You could try mRIET's if you understand how they work and are willing to take the risk (significant risk). I don't like the very long-term bonds because interest rates are more likely to rise than to fall at this point.