Albert Slawsky Chase & MDSass Partners

ON RATES
Even if the Fed raises rates another 50 basis points between now and the end of the year, total return on a two-year Treasury will be over 5%. Not bad when money market funds yield around 6%.

ON RISKS
When rates are rising, bond investors worry about the declining market value of their bonds. But they shouldn't let this blind them to the risk of declining income when rates fall. While holding cash avoids the price risk of longer term bonds, it exposes you to the risk of declining income.

ON ATTRACTIVE BUYS
For those people who have benefitted from the booming economy and now find themselves in a higher tax bracket, tax-exempt municipal bonds are unusually attractive these days. A five-year, AAA-rated muni yields 76% as much as a five-year Treasury.