Now, what’s a bond bubble and how come I view 2011 with trepidation? Second, what the actual best funds to get to avoid unnecessary losses if the bubble breaks? A bubble is nerely highly inflated prices, whereas in the the debt market exactly what we’ve having. When prices go up, yields (interest income divided by price) go down. The trend since 1981: higher prices and lower yields. In simple terms, this means less income for people who own bond funds and most risk. Because when finance interest rates go up bond prices (values) will fall v .. going up as they start to basically did from 1981 through for this year !.

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