Quote:
Originally Posted by rubicon
The bigger concern for me are bonds based solely on the fact that the Fed by its QE is upsetting the balance . Interests rates will have to rise and when it does unless the Fed has a good plan it will play havoc with the bond market. In addition the Fed's QE attempts continue to deprive people of fixed income tools such as CD's, etc. The stock market leaps arr all water driven by the Fed's action because it is not based on factual and stable events.
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You will be somewhat protected if you buy individual short or mid-term bonds and notes. You can just hold these until maturity and get all your capital back at maturity plus the interest specified on the bond/note. The danger is in bond mutual funds where the value of the investments drops when interest rates rise.