Should You Own Bonds When Interest Rates Rise?

As you know, the stock market has attracted a lot of attention – and for good reason, as we’ve seen considerable volatility almost from the beginning of the year. But if you own bonds, or bond-based mutual funds, you might also have some concerns. However, it’s important to understand why bonds should continue to be an important part of your portfolio. To begin with, let’s look at what’s happened with bond prices recently. Inflation has heated up, leading the Federal Reserve to raise interest rates to help “cool off” the economy. And rising interest rates typically raise bond yields —…

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