Conversely, when interest rates fall, bond prices go up in lockstep fashion.
Buffett always seeks out companies in real industries, making real products and real profits. You never know when you might need some of that money. Retirement savers have a dizzying array of options these days. Saudis Dictating Interest Rates?It's a little convoluted, but follow the logic here. You can even opt to have the fund company make automatic monthly withdrawals from your bank account to force you to save. If you've got a pension, you're in the minority of American workers.
Conversely, when interest rates fall, bond prices go up in lockstep fashion. That is, long-term bonds get hit harder than short-term bonds when rates climb, and gain the most when rates fall. Up to six of your latest stock or fund quotes will appear here.
And the effect is strongest on bonds with the longest term, or time to maturity.