Submitted on December 16, 2013
An Insight titled 'Rate Expectations' by Jim Parker, VP of DFA Australia, is attached. What's in it for you? Interest rates around the world are at historic lows. They can only go in one direction from here, right? And aren't rising interest rates bad for bond investors? The truth is more complicated.
Parker suggests that you can help temper rising-rate risk by diversifying across different types of bonds, different maturities, and different countries. That's what Madden is doing for the income/bond funds in your portfolio.
Ultimately, the reasons for investing...