NEW YORK ( TheStreet) -- Since the financial crisis, some financial advisers have warned repeatedly that the long rally in bonds could end soon. So far the pessimists have been wrong. During the past three years, the average intermediate-term bond fund returned 7% annually, according to Morningstar.But lately the bears have been joined by some prominent fund managers who argue that the bond markets are about to enter harder times. With the government running huge deficits, inflation will appear and drive up interest rates, the managers worry. When rates rise, bond prices tend to fall.
Getting Ready for a Bond Bear Market
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.