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Financial Industry Regulatory Authority Warns Investors of Risks in Bond Investments

Financial advisors often recommend that investors who want to minimize risk should place a significant amount of their investments in bonds and bond portfolios.  The argument has been that bonds, with fixed percentages of returns, provide certainty and predictability.  As a result, some people have invested in bonds and bond funds despite the relatively low interest rates associated with them in recent years. Recently, however, experts and, now, the Financial Industry Regulatory Authority (“FINRA”) have warned that bonds may carry significant risks when, as many economists predict, interest rates begin to rise.  The reason is that, as interest rates rise,...

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