Bond funds are likely to drop about 2% today. I’ve never seen such a hit on what is supposed to be a “conservative” investment.
In normal times ... it is.
Same here, I had 100% of my 401K in bonds, couldn't figure out why a "safe as a mother's arms" investment was losing money over the six months I've been in my company's plan. I switched over to the money market fund about a week or so ago, glad I did that. At least my principal is safe from everything except inflation.
What a double whammy it would be to have to deal with falling fund values and inflation at the same time!