Navigate a changing bond market

Get our latest thinking on the market, the outlook for rates, and investment strategies.

Potential pitfalls of negative rates

Potential pitfalls of negative rates
Negative interest rates may lead to unintended outcomes.

End of the bond rally?

End of the bond rally?
Bonds rallied but Fed comments make investors pause.

How high and how fast?

How high and how fast?
Bonds remain important, even amid modest expectations.

Perspective on rate changes

Perspective on rate changes
Four reasons long-term bond investors should not panic.

Should you still own bonds?

Should you still own bonds?
Dramatic rates changes and bond losses appear unlikely.

Bond-market liquidity

Bond-market liquidity
The evolution of bond trading has implications for investors.

First rate hike: what you need to know
Five charts show the first rate increase has not been a showstopper for investors.

New life for money markets
The Fed move has increased rates, but investors need to consider new regulations when choosing a fund.

What to do with your cash
CDs and short-duration bonds may offer higher yields but more risk than savings accounts.
How and why to build a bond ladder
A bond ladder can help to generate a stream of income and manage interest rate risk.

Demystifying bond ETFs
If you like exchange-traded funds and want some of the benefits of bonds, bond ETFs may be an option.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Fidelity does not assume any duty to update any of the information.
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation and your evaluation of the security. Fidelity is not recommending or endorsing this investment by making it available to its customers.
Investors should determine which bond products are right for them based on their investment objectives, risk tolerance, financial situation and other individual factors, and re-evaluate them on a periodic basis. High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds.
Past performance is no guarantee of future results.
Diversification/asset allocation does not ensure a profit or guarantee against loss.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds and ETFs do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss. High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds. Increases in real interest rates can cause the price of inflation-protected debt securities to decrease. Interest income earned from tax-exempt municipal securities generally is exempt from federal income tax, and may also be exempt from state and local income taxes if you are a resident in the state of issuance. A portion of the income you receive may be subject to federal and state income taxes, including the federal alternative minimum tax. In addition, you may be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and “market discount” taxed at ordinary income rates. “Market discount” arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price by more than a statutory amount. Before making any investment, you should review the official statement for the relevant offering for additional tax and other considerations. The municipal market can be adversely affected by tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets or for all account types. Tax laws are subject to change and the preferential tax treatment of municipal bond interest income may be revoked or phased out for investors at certain income levels. You should consult your tax adviser regarding your specific situation.
Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry.
ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.
Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are magnified in emerging markets.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

654948.28.6
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Fidelity does not assume any duty to update any of the information.
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation and your evaluation of the security. Fidelity is not recommending or endorsing this investment by making it available to its customers.
Investors should determine which bond products are right for them based on their investment objectives, risk tolerance, financial situation and other individual factors, and re-evaluate them on a periodic basis. High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds.
Past performance is no guarantee of future results.
Diversification/asset allocation does not ensure a profit or guarantee against loss.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds and ETFs do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss. High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds. Increases in real interest rates can cause the price of inflation-protected debt securities to decrease. Interest income earned from tax-exempt municipal securities generally is exempt from federal income tax, and may also be exempt from state and local income taxes if you are a resident in the state of issuance. A portion of the income you receive may be subject to federal and state income taxes, including the federal alternative minimum tax. In addition, you may be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and “market discount” taxed at ordinary income rates. “Market discount” arises when a bond is purchased on the secondary market for a price that is less than its stated redemption price by more than a statutory amount. Before making any investment, you should review the official statement for the relevant offering for additional tax and other considerations. The municipal market can be adversely affected by tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets or for all account types. Tax laws are subject to change and the preferential tax treatment of municipal bond interest income may be revoked or phased out for investors at certain income levels. You should consult your tax adviser regarding your specific situation.
Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry.
ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.
Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are magnified in emerging markets.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

654948.28.6