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.