How the Yield Curve Affects Your Investments

With all the turmoil in the bond market over the past week, even stock investors are starting to pay attention to bond prices and their impact on stocks. One key element of bond investing you need to know has to do with the yield curve.

In the following video, Fool contributor Dan Caplinger goes through the basics of what the yield curve is and why it's important. Dan identifies several different types of yield curves and explains which stocks tend to best under various bond-market conditions, noting that underestimating the impact of the yield curve on stocks can be a fatal mistake in your overall investing strategy.

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