Details

Autor(en) / Beteiligte

• Tanzer, Andrew

Titel

2011 Midyear Investing Outlook: What Now for Bonds?

Ist Teil von

• Kiplinger's personal finance, 2011-07, Vol.65 (7), p.1

Ort / Verlag

Washington: Kiplinger Washington Editors

Erscheinungsjahr

2011

Link zum Volltext

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• This is a tricky time for fixed-income investors. If you own a ten-year Treasury and yields increase to 4% by year-end (far from a heroic assumption), your bond will lose about 7% of its value. Because of the Fed's extraordinary efforts to keep interest rates low, high-quality bonds are not adequately compensating investors for heightened inflation risk and the chance that these IOUs may lose a significant amount of value if rates rise. If you do buy Treasuries, government-agency bonds and high-grade corporate debt, you should keep maturities short and plan to plow interest and maturing principal back into bonds with higher yields as rates rise. One strategy is to invest in foreign bonds, particularly those from emerging markets whose financial health is improving and whose currencies are rising against the dollar.