Re: What's going to happen w/ Bond Funds
My take is that the Feds are done moving rates up, or they will at most move up another 25-50 basis points if they don't like the inflation data in the next few months.
I believe bonds have already built-in 25 basis points and I am actively pursuing ST index bond funds with cash I currently have in MMF. Some cash in CDs wouldn't hurt either in a 5 year CD ladder. I don't want to go longer than 3-4 year duration, but if you want to put some into longer duration, it's probably best to stick with TIPS....just in case inflation rears its head.