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History says inflation could persist for a decade

Por: MarketWatch Business November 19, 2022

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And then there’s the risk to bonds and bond mutual funds, a staple of the typical retirement portfolio. Bonds suffer the most from rising prices, because the future interest payments are fixed. So the higher inflation goes, the less those payments are worth in today’s money. Meanwhile, as governments fight inflation with higher interest rates, bonds sold with the old interest rate become less and less attractive. They fall in value to... + full article



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