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

|By:, SA News Editor

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.