FYI: Investors are turning conventional wisdom on its head. During stock market routs, they’re often expected to move into bonds for comfort. That hasn’t happened.
As stock volatility rose in October, investors pulled a net $14.2 billion from taxable bond funds, the worst month since December 2015, Morningstar Inc. estimated. And, they withdrew another $7 billion in the first two weeks of November, according to the Investment Company Institute.
So as bond funds battle rising rates and widening credit spreads, is now a good time to pivot to fixed-income? Here’s what some top bond managers have to say.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-11-23/bond-gurus-at-pimco-guggenheim-tcw-warn-of-fallen-angel-risk
