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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Trey McAtee who wrote (25096)9/8/1999 7:12:00 AM
From: Benkea  Read Replies (1) | Respond to of 99985
 
trey:

"plus, as rates rise, they become serious competition to equities."

If rates rise, what do the price of bonds do? What kind of investment is one in which the capital portion erodes even though the "yield" stays the same?

I wouldn't worry about any "flight to quality" help in the US bond since the Yen and Euro are rallying while the dollar is falling. Where would you want to put your yen or euros if you were a foreigner?