Scary Wells Fargo/Gallup survey reveals lack of understanding of bonds and interest rates

The results of this survey were not shocking to me. I do think that readers of this blog would find these results of interest.

Bob Bryan at Business Insider wrote a great article about the lack of individual investor knowledge regarding how interest rate moves affect bond mutual fund prices.

Only 22% of everyday investors know the most basic principle of bonds

With U.S. interest rates near all-time historic lows, where is the next big interest rate move headed? Rising interest rates have the potential to wipe out the last several years of bond mutual fund gains in company 401(k) retirement plan accounts.

Ric Lager
Lager & Company, Inc.