FYI: The prospect of a strong economy in the United States and a strengthening one in much of the rest of the world is good news for workers and for many companies. But for bond investors, it is a headache.
“We’re not of the view that there is any sector that stands out as extremely cheap on a valuation basis,” said Ashok Bhatia, senior portfolio manager in Neuberger Berman’s Fixed Income Multi-Sector Group.
Yet in 2017, many investors turned to bonds anyway. Nearly $380 billion found its way into bond funds, nearly double the flow into stock funds, according to the Investment Company Institute.
That makes a certain amount of sense in Year 9 of a bull market that has lifted the Standard & Poor’s 500-stock index more than 370 percent since the 2009 low. When stocks seem risky, core bonds are safer havens.
Regards,
Ted
https://www.nytimes.com/2018/01/12/business/bond-investors-low-expectations-yield.html
