Like zombies, bonds refuse to stay dead.
Almost everyone, including me, thought the long fixed-income bull market came to an end last May. That’s when bond yields took a huge leap in the wake of comments by former Fed chairman Ben Bernanke about tapering the quantitative easing (QE) program. Bond prices sagged across the board (prices and yields have an inverse relationship). For the first time in many years, most bond funds lost money in 2013, in some cases more than 3 per cent.