A survey conducted by Harris Interactive on behalf of ProFund Advisors LLC found that 65% of respondents weren’t aware that rising rates generally hurt the value of bond investments. Only 35% said they believe the value of bond investments decreases when rates rise – up slightly from 30% in mid-2002. 27% said they believe the value of bond investments increases when rates rise, and the remaining 37% either said they didn’t know the impact or that they believe the value of bond investments stays about the same.
Meanwhile 57% of respondents who identified themselves as investors believe that interest rates will go up over the next two years, while only 6% believe rates will go down.
More information about ProFunds is at www.profunds.com .