Under different circumstances, a drop in the value of the dollar might stir inflation fears among fixed-income investors.

But fixed-income investors have a couple of options.

Inflation is the enemy of fixed-income investors because it nibbles away at their returns.

Until rates stabilize, some fixed-income investors may simply want to hold cash in a money market fund.

Today's Columns Confidence is low among fixed-income investors.

The stock market, which fixed-income investors apparently view as a more accurate forecaster of recovery than recession, is another worry.

In addition, speculation that the economy would quickly improve raised fears of inflation and higher interest rates among fixed-income investors.

Still, the idea of long bonds yielding 6 percent, let alone 5 percent, continues to be a tough sell to many fixed-income investors.

"Junk bond" funds fell through the floor, but most fixed-income investors had a relatively calm year and fared better than people who opted for stocks.

SO what's a fixed-income investor to do?