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URL:  http://boards.fool.com/first-of-all-you-dont-necessarily-protect-your-11716372.aspx

Subject:  Re: Bond investing Date:  12/28/1999  10:58 AM
Author:  markr33 Number:  16969 of 76237

First of all you don't necessarily protect your money by investing in bonds. What you protect is your yield based on interest.
As a matter of fact in a bond mutual fund you can loose principle. But if you invest in the following you will not loose principle if you hold to maturity.
Money Market Mutual fund
T-Bills,
Treasury notes.
I would not invest any lump sum money today in bonds. Interest rates are on the rise.


How do you know that interest rates are going to rise ? If you are so sure, why don't you purchase options on the interest rate futures and retire soon after they rise ? :-)


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