Rising Interest Rates Drive TLT Down 7.4% as Gold ETF Surges 42%

When bonds start dropping like your portfolio during earnings season, you know interest rates are doing their job. The iShares 20+ Year Treasury Bond ETF (TLT) has fallen 7.4% over the past year, proving once again that bonds and rising rates get along about as well as day traders and sleep schedules.

Here's the deal: when interest rates climb, bond prices take the elevator down. It's not rocket science, just basic finance wearing a fancy suit. TLT's current yield sits at roughly 4.4%, which sounds great until you realize your bond's value has been getting hammered harder than a penny stock o...