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Bonds And Bond Funds Still Have Risks

Friday, January 27, 2012 - 5:39 AM
Even though the Fed may keep federal funds rate near zero until late 2014, it doesn't mean mid- and long-term rates will not rise. Allan Roth in his CBS MoneyWatch commentary has some warnings about bonds and bond funds:
Don't read this as a prediction of rising longer-term rates. Economists have an awful track record of predicting inflation and longer-term rates and I'm not going to join their ranks. Just understand that there is clearly more downside than upside when it comes to bond returns.

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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
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