Caveat Emptor: The New Bond Market

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Scott Middleton, CFA, CIMA, Director – Investment Committee

While the warning of “buyer beware” has often been applied to sale of real property, investors would be wise to contemplate the phrase in relation to today’s bond market.  Since the depths of the credit crisis in late 2008, investors have been drawn to bonds’ relative stability and income. After all, why would investors want to own money market funds that pay microscopic, if any, income, much less own equities (regardless of their attractive valuations) that entail punishing volatility? 

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