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Has the "worship of stocks turned into the worship of bonds," asks Sober Look, noting - as have...

  • Monday, August 27, 2012, 5:07 PM ET
    Has the "worship of stocks turned into the worship of bonds," asks Sober Look, noting - as have others - massive inflows into bond funds at the expense of stocks. Worth a look is the disappearing spread between the average yield on 5-year corporates vs. the S&P dividend yield - one can now get nearly the same yield holding the broad stock market as holding corporate paper.
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This news story has 8 comments:

  • If you've got a multi-decade investing horizon, being in bonds right now is dumber than dumb. I'm 100% in equities
    27 Aug 2012, 05:10 PM Reply Like
  • Duh...what to do you think QE is about??? It's forcing money into the stock market regardless of risk tolerance. Therefore, your "wealth" increases and you, as the US consumer and backbone of the economy, spend more. Trickle down economics. The stock market is controlled, sorry MANIPULATED by the Government and Ben B. to make people feel better about spending..Just a Ponzi scheme
    27 Aug 2012, 05:15 PM Reply Like
  • One must continually ask: which has greater risk of principal loss ?
    27 Aug 2012, 05:16 PM Reply Like
  • I agree there Whitehawk, I suspect folks are looking for downside protection while this market sorts itself.

    There are too many things in the air still with Europe, China, Iran, fiscal cliff, presidential race, do-nothing Congress, etc etc. The business environment is on hold and so are investors.

    I sincerely doubt most folks hiding in bonds are doing it with a 'multidecade horizon' in mind.
    27 Aug 2012, 06:23 PM Reply Like
  • Forrest Gump: "My mama always said life was like a box of chocolates. You never know what you're gonna get". I don't know how long I got to live so I must be dumber than dumb.
    27 Aug 2012, 09:07 PM Reply Like
  • Beware the horrors of duration....
    28 Aug 2012, 11:46 AM Reply Like
  • So aren't all the dollars running toward bond at risk of losing principal if/when interest rates rise? I'm staying away from bond. lose money every time I try them.
    3 Sep 2012, 05:37 PM Reply Like
  • Only if we sell them.
    4 Sep 2012, 05:50 PM Reply Like
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