This information is valuable when one considers the benefits of a balanced portfolio which would include some smaller company stocks, larger corporate issues and perhaps some long term bonds to provide stability, and short term bills for liquidity.

Bonds tend to perform counter to abrupt changes in interest rates. If rates go up, the market value of a portfolio of long term bonds will decline. Of course, should interest rates decline the bond portfolio would then increase in value.

Source: Investment Performance Digest, 2000