No. of Recommendations: 0
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.
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.

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.

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.