Interest rates going up....hmmmm....for those of us holding EAD, ACG, or other hi-income bond funds, we don't really want to sell those funds and lose monthly income...also we do not want to take a huge draw down as interest rates go up.
So, what can we do? I've been considering buying some RRPIX (a 125% inverse of the 30 year treasury bond), so when interest rates increase, so does RRPIX. I would appreciate comments on this hedging approach.
-nothing happens without a dream