If you invest in bonds, you probably worried in recent years about rising interest rates. You shouldn’t.
Climbing rates mean your existing bonds effectively yield less and make you yearn for newer bonds with higher yields. Bond prices fall as yields rise. A valid concern – today’s historically low interest rates are overdue to jump – but is now when to scrap your old paper?
First, consider one of the most basic principles of investing: Markets are unpredictable. Are we certain interest rates will rise? If so, soon?