Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

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.

Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,611