Interest rates are at historic lows. But they will rise eventually. If you invest in fixed-income vehicles, such as bonds, what might higher rates mean for you? As is almost always the case in the investment world, there’s no simple answer. First, it’s important to distinguish between short-term and long-term interest rates. The Federal Reserve is determined to keep short-term rates low until unemployment improves, but, in the meantime, longer-term rates may well rise. Depending on your situation, a rise in long-term rates can present both opportunity and concern. The opportunity: Rising rates can mean greater income if you invest …
If rates rise, what should you do with bonds?
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