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Another Red Flag As Veteran Bond Fund Manager Raises White Flag
There's an important point here that (to my surprise) I've rarely seen made elsewhere - that with interest rates so low, even a miniscule movement up in rates will result in bond losses.
Most of what I read tends to be along the lines of: the last time rates rose, people still made money in bond funds. Sure, because (as this article points out), there was a bigger margin for "error" then - since you were earning interest on the bonds (unlike today), that interest could more than make up for the decrease in the bond price.
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Most of what I read tends to be along the lines of: the last time rates rose, people still made money in bond funds. Sure, because (as this article points out), there was a bigger margin for "error" then - since you were earning interest on the bonds (unlike today), that interest could more than make up for the decrease in the bond price.