Why is my Fidelity bond fund (FAGIX) down over 3% since I bought it?

Can somebody explain to me why a bond fund would have lost so much value? I thought this was supposed to have less risk than a stock fund. Thanks.

YIKES, who in the world told you that junk bonds had less risk than stock funds?????? If you are looking for safety, DON'T BUY A JUNK BOND FUND. The bonds in this fund are rated as below investment grade - BBB.

If you are looking for a bond fund, with safety and return, buy a high quality bond fund. Check out FGMNX, FTHRX, or FBIDX.

Bonds fluctuate also, not just stocks. That's an excellent fund and you should hold onto it for the long term.

You mean you do not know why? Let me explain. This is a junk bond fund. The economy is heading for bad times. Junk bonds are not an ideal investment during recessions. They tend to go belly up in droves.

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