What have you always wondered about the economy? Tell Us
Money Matters

How to safe guard yourself against a bond bubble

Paddy Hirsch Feb 6, 2013
HTML EMBED:
COPY
As investors pour money into stocks, there are fears that the bond market could suffer. How should you adjust your portfolio? Richard Heathcote/Getty Images
Money Matters

How to safe guard yourself against a bond bubble

Paddy Hirsch Feb 6, 2013
As investors pour money into stocks, there are fears that the bond market could suffer. How should you adjust your portfolio? Richard Heathcote/Getty Images
HTML EMBED:
COPY

Japan’s Nikkei index hit a four-and-a-half year high today after jumping four percent. U.S. markets are also near record highs. But as investors pour money into stocks, there are fears that the bond market could suffer. Just last month, investors moved $74.4 billion out of bond funds and into stock funds.

So, what does this trend mean for you?

According to Paddy Hirsch, Marketplace senior producer of Personal Finance, interest rates on bonds are likely to increase while older treasury notes and bond funds may lose value. But Hirsh’s advice: don’t panic. Instead, he recommends reviewing your portfolio and possibly tweaking bond investments.

To hear about different ways to adjust your bond holdings, click on the audio player above.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.