How a "Dull" Investment Can Be a Great Investment

Over the past few years Ive read article after article about investors getting out of the stock market in favor of bonds. I understood the reasons for getting out of the stock market, but the thought of moving into bonds baffled me. Interest rates were very low, and I knew that when the rates started going up, bond prices would go down a simple inverse relationship. I started investing in the mid-80, when rates were at the highest point of the past 50 years who would buy bonds now, when yields are at the lowest levels in half a century Thers no place for your principal to go but down, I thought.