Bond market crash 2013

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Should You Be Worried About a Bond Market Crash?

Talk of a bond market crash has been building for months, and not just among obscure financial bloggers.



Articles sounding the alarm about a bond market crash have appeared time and again in many mainstream publications.

Recent headlines like "Danger Lurks Inside the Bond Boom" (The Wall Street Journal), "How Banks Could Get Blown Away by Bond Bubble" (Fortune), and "Beware the Bond Bubble in 2013" (CNNMoney) have raised concern among investors.

Here's the problem: Interest rates are at historic lows. That makes bond prices relatively high.

There's pretty much nowhere left for rates to go but up. That might be good for buyers of bonds in the future, but terrible for those who hold bonds stuck at low rates.

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