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with the threat of interest rates rising what is a good fixed income investment, currently have XBB and XLB(guessing this is not good)
 

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Discussion Starter #3
Indeed. You'll probably want to move your fixed income to shorter duration securities like XSB or CBO.

why have any fixed income bond ETFs if they losing the capital?

XSB and CBO are performing better than XBB but still losing money
 

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No one knows for sure how quickly or how much rates will rise. You can go with money-market if that is more comfortable. In the mean-time, rates will be miserable.
 

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No one knows for sure how quickly or how much rates will rise. You can go with money-market if that is more comfortable. In the mean-time, rates will be miserable.

I was thinking about going all equities/stocks for awhile, make a good return then jump back into the bond ETFs, realize risky but doesn't make sense to me to lose 2-5% when equities are booming
 

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They can stop booming pretty quickly. What you suggest is good if you have a very good exit plan (look at moving averages, etc.)
 

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What about shifting some of your bond portfolio weight into defensive stocks for a little while? E.g. keep part in short term bonds, but substitute the long term bonds with utility (or BMO's etf ZUT), consumer staples or health care stocks.
 
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