If interest rates rise, what will typically happen to bond prices?
18% - They will rise
28% - They will fall
5% -They will stay the same
10% - There is no relationship between bond prices and the interest rate
37% - Don’t know
2% - Prefer not to say
The heinous data above comes from Finra’s newly released Financial Capability Survey: only 28% of the national sample of more than 28,000 adults had a clue that bond prices would fall if interest rates went up. This strikes me as a pretty good argument to get a competent financial advisor.
In unrelated news, 67% of respondents rated their overall financial knowledge as “high,” and 75% endorsed the statement, “I am pretty good at math.”
The financial market is a really expensive place to get an education.
[...] Great post on just how little people understand about investing. Wow. [...]