Fund Investors Favor Bonds

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Includes: TLH, TLT
by: David I. Templeton, CFA
Recent mutual fund flow data shows investors continue to favor bonds over equities.

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From The Blog of HORAN Capital Advisors
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From The Blog of HORAN Capital Advisors
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Source: ICI
With the sovereign debt issues in Europe top of mind for investors, they continue to bet the best of the worst fixed income investments are U.S. Treasuries. One risk investors face with fixed income investments is the negative impact of a rise in rates. The 10-year U.S. Treasury yield is a meager 1.85% in spite of the fact the consumer price index is running at a year over year rate of 3.4%. Investors are in for a rude awakening when rates do begin to move higher (bond prices have an inverse relationship to the move in interest rates).

From The Blog of HORAN Capital Advisors
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