Vanguard Wellesley has been discussed quite a bit in this tread. I have a question about it. I am considering moving some money there that is currently in V money market. This is IRA money I would start to draw on in 3 years. (Recently retired but currently using after-tax money for living expenses).
I was under the impression that one reason Wellesley did well relative to stock indexes during the 2000-2002 bear market was that bond NAV's increased because interest rates were on the decline for much of that time period. If this is true, would the opposite be true today while rates increase? Is it advisable to avoid investing in Wellesley until the fed gets done raising interest rates, intermediate to long-term bond yields increase, and bond valuations have dropped down some?