[sixdimensional]

Traditional economic logic says that bond prices have an inverse relationship with interest rates. That means if you buy bonds now, and interest rates shoot up, the underlying price/value of that bond will plummet. This is especially bad if you have callable bonds, because the bond holder can call them at any time, forcing you to essentially receive the value of the bond at the time of the call - even if the price/value has plummeted due to increasing interest rates.

Be cautious investing in bonds, and if you do, you might consider holding them to maturity if interest rates go up and prices/value goes down (and hope they don't get called).

I personally think it's a scary time - interest rates going up will have an effect on prices of bonds, stocks, and more. So while you earn more interest if you own fixed income assets, the value of those assets decreases and you can get stuck.

That said... IMHO, the raising of interest rates... I think really needs to start happening before the artificially low rates creates a different kind of animal altogether.