Title says it all. As the interest rates go up in a couple of years, the bonds currently issued will become less valuable as their coupon would be lower than newly issued bonds. Will the price of funds like BIV or other bonds funds only decrease going forward? In case of another crash the interest rates can’t be lowered as they are already near bottom.
Why would you invest in bonds if you were building a three fund portfolio? Any alternatives to bonds for capital preservation?
Submitted June 30, 2021 at 05:50AM by patientways https://ift.tt/3jqFtVB
