What Should Bond Investors Do Now?

Don't worry about whether interest rates will rise; focus on your investing goals and what bonds do for your portfolio.

As the U.S. stock market continues to defy investor expectations by scaling new heights, the U.S. bond market appears to be defying the Federal Reserve, which is counting on interest rates to rise. The Fed has clearly signaled that it wants to "normalize" interest rates, which have been hovering near their historic lows for several years; yet the bond market has barely raised an eyebrow at the certain prospect of future rate hikes.

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Craig Slayen
Principal, Cypress Partners

Craig Slayen is a principal at Cypress Partners., a financial planning and investment management firm in the San Francisco Bay Area.

The firm believes that the key determinant to long term financial success is based around three concepts: sound planning, prudent investing, and an awareness of the behavioral traps that can kill portfolio returns.

Craig is the author of Successful Investing for Female CEO's, published by Charles Pinot. He is a graduate of UC Berkeley.