Bondholders Better Beware as Fed Starts Hiking Rates

Positive economic news has made a rate hike at next week's Federal Reserve meeting a near certainty and that means bondholders beware, said Dr. Robert Johnson, president of the American College of Financial Services. Dr. Johnson said many investors mistakenly think that bonds are safe and stocks are risky. However, in an extremely low interest rate environment, even small changes in market yields can lead to dramatic changes in bond values.