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Even 'safe' bond investments falter as markets tumble
Economy
Published in 13-2-2018
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NEW YORK - The stock market isn't the only thing dropping. Bonds, which are supposed to be the safe part of every investor's portfolio, have faltered, too. In what's been a rude awakening for some investors, bond funds have lost ground these past couple of weeks, unlike in past downturns for stocks. What's different this time is that the same things undercutting stocks are hurting bond prices: worries about inflation and the possibility of much higher interest rates. Bond losses have been more modest than the setback for stocks, but more may be on the way. And swings in bond prices are likely to become more common than in recent years, when returns were unusually smooth, experts say.
Reference: www.chron.com