Charles Schwab's Outlook on Bonds

December 23, 2014 by Matt McCracken

I am just listening to some music on Youtube and between every song, there now seems to be a commerical.   I have now listened to a couple different messages from the folks at Charles Schwab.  And the second one I was like, WOW!!!  Are you kidding me? 

The very pleasent lady was explaining to potential customers of Schwab that raising rates would be a good thing for their bond portfolio as it would increase the yield from their income investments.  Everyone knows raising rates is devastating to a bond portfolio.  And if you own bond mutual funds, forget about it.  Bond funds will get crushed when interest rates rise.