Bonds Are Slumping Again. How to Play It Safe.
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A reality check is hitting the bond market: The economy could be headed for a “no landing” scenario, prompting the Federal Reserve to pump the brakes harder than previously anticipated.
The prospect of higher interest rates—the Fed’s primary policy tool to slow economic growth and curb inflation—sent bonds into a tailspin in the past few weeks. A recovery could be rocky in the months ahead. High-quality short-term debt, like Treasuries yielding 5%, may be a good way to ride out the volatility and earn positive total returns.
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