“Rates have nowhere to go, but up.” An investing catch phrase that, despite the certainty of the language, has been anything but certain. When pundits first started saying this, bond rates* were still far from the low of 1.39% seen in July 2012. Even if we knew that rates were going up, Dave Plecha of Dimensional Fund Advisors, in Dimensional Takes Aim at Bond ‘Myths’ suggests that we may still not be better off by being out of the market during a period of rising interest rates.
Source: Yahoo! Finance, CBOE Interest Rate 10 Year T No (^TNX)