As expected, the Federal Reserve left rates unchanged today for the third straight time. The rate remains at 5.25%.
Recently we have seen strength in the equity and bond markets, which is quite unusual. There are two groups of investors forming at the moment: The Gloom and Doom gang and those who expect a year-end rally.
In the upside-down world of bond investing, bad news about the economy makes investors turn back to bonds, which pushes yields down, essentially making it cheaper to borrow money.
Investors can seek bond exposure through the exchange traded fund iShares Dow Jones Select Dividend Index (DVY).
The Wall Street Journal had a great article as to how investors can participate in the bond rally. Click here to read it.
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Yaser Anwar is a guest author at ETFtrends & the editor of Investment Ideas by Yaser Anwar blog. The author of this article is not a registered financial advisor & does not give investment advice. This article does not comprise any solicitation to buy or sell securities, ETFs or other investment vehicles.