1. How about a 100% bond market, to my limited knowledge is it 99% safe + guaranteed return. : Please let me me know if this a not true.
Thanks again.
Bond funds (ETFs like VAB or mutual funds) will fluctuate in value, as the fund manager buys and sells bonds before maturity dates. As interest rates increase, in general, bond funds go down in value / lose money. I have funds that dropped in value by 3-4%, for example, over a year or two. If you the fund to the "Bond Duration" stated on the prospectus, you will generally receive a positive return.
Only bonds bought directly and held to maturity dates are guaranteed the stated income. If you are interested in this, look into "BOND LADDERS".
Although -- Some companies who issue a bond may fail, or go bankrupt. In this case, Bond holders get their money generally first (after government employee taxes are paid), as bonds are typically written against real assets .. in comparison, stock shareholders get money clost to last. Sometimes there are not enough funds to pay out the bond holders.
Government bonds have a low risk and are usually issued against general goodwill of the government, not assets per se.