Confusing Times for Bond Investors

Go figure.

The Fed is committed to raising short-term interest rates, but long-term rates have been creeping down since early June. The yield on the 10-year note -- which peaked at 4.87% on June 14 -- fell through 4% this week for the first time since early April.

So what are individual investors to do? The experts tell us we should keep a portion of our investments in bonds to have a rock to cling to during market meltdowns like 2000-02 and 1973-74. When stocks are down 30% to 40%, boring old bonds will still be there, throwing off income. ...