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Bonds?

Mark2016 · 2017-12-14 11:37:57

Hi everyone I have read that people sometimes have a mix of equities and bonds in their portfolios. Can someone help me understand something about bonds. I know they rise and fall, but are they bought like an 'insurance' the way someone might buy gold. Gold usually increases when the stock market falls (though not always).…

Comments

jamei305 Posts: 635 Forumite

29 December 2017 at 9:30AM

EdGasketTheSecond wrote: »

With interest rates on the rise, bonds should be avoided as you will suffer a capital loss.

If that is true the prices of strategic bond funds should reflect this and so be appropriately valued, meaning there is no reason to avoid them.

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