The markets continue to be volatile.
With the European countries still struggling to figure their way out of the debt mess, and even the well regarded bank like JP Morgan taking large losses on their hedging activities, it is understandable that some investors may decide move their assets to the relative safety of the bonds.
However, this safety is illusory.
The Inverse Relationship Between Bonds and Interest Rates
This is one of the fundamental principle of bond investing. It is well understood but still bears repeating.
The value of a bond goes up when the interest rates are low and it goes down when the interest rates are high.
[Read more…] about Good High Yield Dividend Stocks Are Better Alternatives to Bonds Today
