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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).…

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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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