The question is whether this is the time to look at them more as a speculative investment in which their potential for price appreciation makes them a much better bet than stocks. The best strategy for investors now is to sell the stock market and buy the bond market. But investing in bonds isn't the same as investing in stocks, and those who feel comfortable with stocks shouldn't assume they'll feel equally as comfortable betting on bonds. Invest in a technology fund, and your shares will soar if your fund manager picks the next Microsoft. Invest in Thai stocks, and you'll lose a bundle if the baht collapses.
Bonds are different.
Until the bond matures, you'll also collect interest. If you buy a bond when it's issued and hold it to maturity, things are simple. Bond investors can get burned by rising rates, which can send prices plunging. So if you want to sell, your 8 percent bond will fetch less. Bond funds can be even more complicated.