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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
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