You can beat your fear of losing money with bonds as interest rates rise — if you understand this one thing

CHAPEL HILL, N.C.—Here’s another entry for “Ripley’s Believe It Or Not”: Higher interest rates don’t have to make your bond mutual fund suffer.

This goes contrary to everything you’ve been told about how bond prices move inversely with interest rates. The conventional wisdom about bonds and interest rates is why so many investors today are avoiding bonds and bond funds, convinced that interest rates are headed higher in coming years.


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