Recent developments in the bond market and what you as an investor can do about it.
In 2011, it was bonds that were among the strong performers for investors. Municipal bonds were the way to go and if you had been watching the Suze Orman show then you would have had them in your portfolio. Experts have warned that there could be a collapse in the bond market this year. Let’s explore this further.
Shrewd investors have been warned that bonds may no longer be suitable for them. But, if you are really looking at a diversified portfolio, then bonds have to be part of it to mitigate risk. The real threat to the value of bonds is that of interest rates going up. But when you really think about it, bond yields have been falling for the past three decades.
