No. of Recommendations: 0
Gotta question for the Fools:

Have bonds had their run? Bond prices go up with decreasing interest rates, so their prices dont have much further to rise.

I'm also confused about bond mutual fund performance in a rising interest rate environment. When the interest rates go back up, the bond prices will drop. But wont the yield then go up and it be (basically) a wash? How were bond fund yields performing during the rising interest rate climates of the past?

One usually does not buy bond funds for capital appreciation, which IMO is what we're seeing now.

Am wondering about all this, because I'm deciding whether to put my medium term, after-tax investment money in a domestic hybrid stock fund (OAKBX) or a pure bond fund (DODIX).

Mark in Maryland
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.