Being a conservative investor, I have a decent percentage of my portfolio in bond funds, with a mixture of durations. This has been a sweet spot in the last couple of years with interest rates dropping. I've done poorly in trying to predict interest rates, but the recovering economy combined with news of rising prices and inflation is hinting pretty strongly at interest rates rising. One thing that seems for certain is that interest rates have little or no room to fall further.
To complicate things, my equities have risen to the point that I will probably be rebalancing into fixed income investments of some sort.
Have any of you made changes to your bond fund mix or durations or do you have plans to do so? I've been considering shifting into short duration funds or possibly out of a few funds completely and into short duration CDs or individual bonds in order to protect against a fall in NAV.
To complicate things, my equities have risen to the point that I will probably be rebalancing into fixed income investments of some sort.
Have any of you made changes to your bond fund mix or durations or do you have plans to do so? I've been considering shifting into short duration funds or possibly out of a few funds completely and into short duration CDs or individual bonds in order to protect against a fall in NAV.