No. of Recommendations: 0
Rus when I said 3% rise, I meant the 2 year bond going from 2% to 5%. As you undoubtedly know interest rates have generally being going down since 1980. Last time I checked no one was predicting negative interest rates, but the carry trade sort gets there.

I know the returns are bad, but CDs will return your principle. Bond mutual funds that do not keep all bonds to maturity will loose principle as they sell in a rising bond rate environment.

Gordon
Atlanta
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.