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'No Income' No Reason to Ditch Core Bonds

As bond-fund returns are expected to stay volatile, high-quality intermediate bonds provide greater portfolio stability than higher-yielding, nontraditional bonds.

'No Income' No Reason to Ditch Core Bonds

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Mike Rawson: After several years of favoring bond funds over stock funds, investors rotated out of bond funds in 2013 as the Federal Reserve started to reduce its asset-purchase programs. Since then, interest rates have risen to about 2.7% and the performance of intermediate-term bond funds has suffered because of that. Last year, the average intermediate-term bond fund was down about 1.5%.

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