Many investors actually think bonds can't go down. THEY CAN. If interest rates go up during coming inflationary period they can go way down. If you hold a lot of bonds and other fixed income investments you need to read this.
http://www.fool.com/investing/mutual-fu ... t-pop.aspx
I suggest that you move some of that money in bond funds to the MLPs on our Watch List.
Dan
Bonds can go down
Bonds can go down
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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mdwitte
Re: Bonds can go down
Dan: fwiw, I agree 100% ! ...have never understood the attraction to owning bonds...today's rate is 4.12% on the 30-yr Treasury...I just can't imagine anyone loaning the guvmint money for 30 years at 4+% !! Even at 15% I'd hesitate! Inflation will decimate bond holders...and bond funds, as well...
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mdwitte
Re: Bonds can go down
Another concern I have: how large an impact on rates is the Fed's QE having? What would Treasury bond rates be without the Fed efforts to keep rates low?