By Daily Crux Editor Justin Brill:

With interest rates in the basement, many investors have moved their cash out of money-market funds and into bonds that pay higher yields. The strategy has worked well this year, with the average bond fund returning 16.3%.

The Fed is expected to keep short-term rates low for some time, which typically keeps long-term rates down as well. But if interest rates do rise, conventional long-term bonds will go down in price.

Safer alternatives for cash include short-term bond funds, stable value funds, and bank certificates of deposits (CDs), whose values are less sensitive to interest rate changes.

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