Advisors Are Questioning The Conventional Wisdom On The Need For Bond Exposure

Wednesday, February 16, 2011 07:33
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Advisors Are Questioning The Conventional Wisdom On The Need For Bond Exposure

Tags: bonds

Spurred by the looming bond crisis and by changing needs among investors, some advisors are cutting back on bonds and finding alternative investments.

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In an article with the provocative title “Do You Still Need Bonds?” SmartMoney says the widespread retreat from bonds reflects deeper trends than just concern over a potential bond crash.


In the meantime, the Wall Street Journal reports on a trend threatening the bond market from another direction. For the first time, major banks are offering large loans directly to cities, states, schools and other public borrowers, giving them an alternative to issuing bonds.
 

Comments (1)

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stvnrsmth
Hard to imagine more dangerous thinking. One advisor is quoted as saying, "I don't think there's any money to be made [in bonds] for a while."

Bonds are held in portfolios to not lose money. Keep durations short and quality high. Make money on the equity side.

stvnrsmth , February 16, 2011

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