Investors shift from stocks to bonds. What does this mean?

1 Answer

Answer :

answer:It is easy to explain the past. The future is more difficult – and that is the one that counts. From the article above it appears investors were betting that stocks would go down or under-perform the bond market. Stock went up 7% which is much better than bond yields of 4–5%, so it looks like they guessed wrong. Will the market go up or down? Will Iran do something stupid? Will there be an announcement that ½ billion eggs are tainted? How about an earthquake in california? Or another oil leak in the gulf? Nobody knows. It is a crap shoot. You invest what you can afford to lose in what you believe will outperform the rest of the market. Good luck.

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