If I think rates will fall, should I buy long-term bonds?

If you invest in long-term bonds expecting rates to fall, the price gain can be large if you are right, but losses can also be large if you are wrong.

The Financial Supervisory Service notes that even market experts find it hard to predict long-term interest rate trends accurately, and that sellers usually make recommendations based on short-term outlooks of around 1 year. Rather than focusing on rate forecasts, first consider when you will need the money and how large a loss you can tolerate.