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If I believe the market averages are going to go down rather than up over the next few months or year. Aren't bond funds the ideal place to be? Not junk but Aaa.
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If by "ideal", you mean the absolute safest place to be, a short-term Treasury bill or an insured money market account in a bank is safer than just about anything. Everything else is relative.

If you firmly believe that stocks will continue to go down, then yes, bonds would be a smarter thing to buy than stocks.

BUT -
1. Long-term bonds also come with more risks than short-term bonds. If interest rates go up from here, the current market value of bonds will go down. This is true of AAA and even Treasury obligations.

2. Funds have some additional risks in addition to the bonds in them; i.e., you never know when the fund managers will decide to, or be forced to, sell bonds.

Bill
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