FYI: Relief washed over the bond market this week after the Federal Reserve decided to hold off on hiking interest rates. But many investors were left to wonder: Was it just a temporary reprieve?
The stakes are high for bond mutual funds, which are supposed to be the safe part of our portfolios. Investors have been fretting for years that interest rates are set to rise, something that would knock down bond prices. And even though the Federal Reserve didn't raise its benchmark for short-term rates this past week, the majority of its policymaking committee still expects it to happen later this year.
Regards,
Ted
http://bigstory.ap.org/article/23a0a21a8c6d439a932253bd663688a0/whats-next-bond-funds-after-feds-decision
