Intermediate and long term interest rates are on the rise. On January 1, 2013 a 10-year Treasury bond yielded 1.84%. As of August 22nd, yields on those same bonds climbed to 2.86%. U.S. stocks also enjoyed strong gains during this time period while their fixed income counterparts have not fared as well. It is not uncommon for fixed income investments to produce negative performance in a rising interest rate environment, but their recent negative returns beg the question, “Should I be invested in fixed income?” November 2013
Leave a Reply