Bond investors have a lot on their minds right now. Yields are razor-thin and a number of central bankers are now talking up the possibility of rate hikes in the not-too-distant future, threatening bond prices.
Rather than taking a risk with bonds, why not just bide some time in cash?
That sounds like a decent plan until you take a quick look at how well bonds have performed this year. Yields are down dramatically, just about everywhere you look, driving prices higher and delivering unexpected returns to anyone who thumbed their noses at the apparent risks.