The number of bond funds owning stocks rose to 352 in Q1, according to Morningstar, up from 312...


The number of bond funds owning stocks rose to 352 in Q1, according to Morningstar, up from 312 in Q4 and the highest level in nearly 2 decades. "We believe that traditional fixed income (AGG, BND) is at a historic level of being overvalued," says Forward Management, explaining to investors why it's moved from about zero of their funds in stocks to about 50% over the last year.
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Comments (5)
  • bjamesh
    , contributor
    Comments (275) | Send Message
     
    Always pays to read the prospectus. Retirees could be WAY more exposed to the stock markets than they think, or want. Could be in for a nasty surprise with the broad US market at near all time highs, and in May. Buyer beware!

     

    Maybe it's a good time to check up on someone you know?
    2 May 2013, 08:40 AM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3449) | Send Message
     
    Great news! Let the Great Rotation begin!

     

    Long live the wonder boy and the professor; they are having the greatest time of their lives!

     

    Hooray!

     

    Barack Strong.

     

    The Benny Dollar Strong!
    2 May 2013, 10:07 AM Reply Like
  • Ananthan Thangavel
    , contributor
    Comments (835) | Send Message
     
    All this means is that stocks will fall even harder when they fall. Bond funds buying stocks? How is that a good thing?
    2 May 2013, 11:14 AM Reply Like
  • zero1945
    , contributor
    Comments (245) | Send Message
     
    So they advertise themselves as a bond fund but own stocks?

     

    Pretty under-handed.
    2 May 2013, 11:30 AM Reply Like
  • mostserene1
    , contributor
    Comments (3694) | Send Message
     
    Just remember, bonds also crashed in 2008. They are as risky as stocks, but pay less yield.
    2 May 2013, 03:10 PM Reply Like
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