You CAN Lose With Bonds
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Stocks are risky because stock prices go up and down all the timesometimes wildly soand if you have money invested in stocks, the value of your original investment can drop substantially.
In contrast, many investors put money in bonds to receive interest income and assume their original investmenttheir principalwill not change in value.
However, this assumption is wrong! You can lose principal in a bond investment, and you can make money in a bond. This is true whether you hold them individually, or collectively in the form of a bond mutual fund.
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