It is important to notice when a bond fund net asset is dropping because of rising yields that you do enjoy the increased yields as long as you still hold the bond fund. Reduced net asset value equalizes increased yield stream at holding time of average maturity. Long term perspective is needed to manage a bond fund position well.OK thank you. It was a long time coming to get the NAV back so I was just checking to see if there were any options that would not be as volatile to interest rates as far as losing my principal. Thank you for your input.
TIPs do better when inflation is high; nominal bonds do better when inflation is low.
Short term bonds are less interest rate sensitive, but they are more cash-like.
Statistics: Posted by Tyler Aspect — Thu Sep 19, 2024 10:57 pm