The 27th April 2015 could become a significant date in the history of investing. It was around that date that the bond market threw a tantrum and experienced a significant sell-off, the like of which hasn't been seen since 1994. This in turn saw equity markets tumble and investors' portfolios fall in value.
Even if you don't buy explicit bond funds the chances are that some of your low risk funds do buy bonds. But even then, when the lowest part of investors' portfolios is losing money they tend to run for the hills which in turn is bad for share prices. So is there nothing investors can do to protect their money other than sell up? Well there are actually a few funds out there that have a history of doing well in a bond market sell-off.
Quick guide to how the bond market worksBut first let me give you a bit of background of how bonds work so you can understand what has been happening.
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