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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: stock bull who wrote (4374)4/8/2010 6:54:38 PM
From: Investor2  Read Replies (1) | Respond to of 34328
 
""Bear flattening" could surprise bond investors in 2010
April 01, 2010

Bond investors worried about the prospect of rising interest rates, rising inflation, and an inability to generate sufficient income may be taking on more risk than they realize if they switch to inflation-protected bonds or corporate bond funds with shorter average maturities.

"In fact, those investors have moved into precisely the area where—if bond market expectations are correct—the poorest returns could occur" when the Fed begins boosting interest rates, said Vanguard chief economist Joseph H. Davis, Ph.D.

While these moves would have been perfectly reasonable in the past, 2010 may not be a textbook year."

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The rest, including charts, at:
personal.vanguard.com