I have always believed this: that bond fund prices are fairly predictable (as opposed to stock, which are mostly random) because their returns are largely based on dividends provided by the underlying bonds, which are stated up front (unlike stock prices, which do not relate to how well the company does a lot of the times). Of course there still variation like what the fund manager does and market demands etc, but in large, they are relative “sane”, am I even right?
If I am right (kind of), assuming inflation has stopped completely. Assuming the feds has decided to not raise rate at all (these are all assumptions, for education purpose). What is the expected behavior of prices of bond funds? Are they supposed to just hold? Go up? Or keep going down just less so? I assume corperate bond funds will behave differently that those funds focused on government ones (e.g. municipal, etc). Can someone enlighten me? I just cannot reason an answer out.
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