Why Goldman Thinks You Should Dump Bonds Now
January 04, 2013 at 14:13 PM EST
Goldman Sachs strategists have issued a big warning to clients hiding out in bond funds: You're about to lose your shirt. The reason: interest rates began rising this week, and if they return to the historical average yield of 3 percent, prices for long-term bonds will plummet. (By their very nature, fixed income prices must fall if rates rise.)