A serious decision facing advisors and investors is whether to rid their portfolios of bonds. With interest rates at extraordinarily low levels, many experts understandably expect rates to rise at some point. When interest rates rise, bond prices fall, of course. That means holding bonds would seem to be a pretty bad idea.
But rates alone are not the sole factor that needs to be considered. The ultimate measure for an investor is the total return of a bond or bond mutual fund.
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