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Re: drive post# 7865

Sunday, 12/11/2016 8:13:11 PM

Sunday, December 11, 2016 8:13:11 PM

Post# of 8303
No, it is not true. Rising interest rates will cause Bond prices to fall; therefore, the F-fund will fall. F-fund is the US Aggregate bond index (more or less) and attempts to track a total bond index. The F-fund fell about 2.4% in November as interest rates rose. Here’s a decent discussion on the subject of why rising interest rates are bad for bonds…
http://www.forbes.com/sites/mikepatton/2013/08/30/why-rising-interest-rates-are-bad-for-bonds-and-what-you-can-do-about-it/#6efe3642c7ad

When the stock market is under stress, the F-fund can be a good investment since investors will sell stocks and buy bonds. The strong demand for bonds causes the price of bonds to rise.

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