Despite Surge in U.S. Stock Prices, Investors Remain Cautious
Investors are putting larger amounts into bonds and foreign-stock funds, analysis shows, despite the surge in the Dow Jones industrial average.
Investors are putting larger amounts into bonds and foreign-stock funds, analysis shows, despite the surge in the Dow Jones industrial average.
Bonds have outperformed stocks over the last 30-year period, but things are changing and bonds are no longer the safe haven they once were. In fact, bonds already look overvalued, and if rock-bottom interest rates keep moving higher, bond funds could plunge.
Thanks to their lower fees, most ETFs do better for investors than similar mutual funds, and investors have noticed: They poured $154 billion into ETFs in 2012, while yanking more than $119 billion out of stock mutual funds. Just one problem: Most of that money went into the wrong kind of ETFs.
A tsunami of money -- $2 trillion within the next decade -- is flowing into target date funds, a type of retirement account that's supposed to make investing for our post-work years simple. But the way those funds are run isn't always in our best interest. Laura Rowley explains.
As small investors flee the low returns of Treasury bonds, many have piled into high-yield debt -- also known as junk bonds. Problem is, as one pro puts it: "The trade when you could buy anything and make money ended six months ago." Investors need to be far pickier now.
The securities industry spends hundreds of millions of dollars a year in advertising, but that doesn't mean you're getting the straight scoop. The financial media doesn't always help, either. So, as you contemplate investing for 2011, here are 10 facts you should know.
China's holdings of U.S. Treasury bonds are so huge that they'd be a financial "weapon of mass destruction" if Beijing were dump them all quickly. But a closer look at the data and some recent trends suggests that China's power in this regard is overrated.
Investing expert Dan Solin hears this question frequently: It's obvious the dollar is going to crash, so what can I do to protect my investments? His answer may surprise you.
The amount of money sitting in bond funds is simply staggering: $450 billion has flowed into these assets since April 2009. But investors, some fearful, others just apathetic, may be missing out on the promise of much better returns offered by equities.
Stocks enjoyed a respite from what some see as a bubble in pessimism, and that sudden turn should be unnerving to a fast-growing crowd of individual investors: those who have recently raced into ultrasafe holdings like U.S. government bonds.
The securities industry is always coming up with the "latest and greatest" way to make a quick buck. But almost all of such vehicles are structured to benefit brokers and money managers. Investors wind up getting relegated to their usual status as victims with no redress.











