bond funds

Suddenly, Bonds are Riskier than Stocks

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.

The Dangerous Problem Behind ETFs' Big Asset Surge

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.

Five Reasons I Hate Target Date Funds

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.

The Junk-Bond Market's Best Days May Be Behind It

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.

10 Investing Facts You Probably Don't Know

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 to keep in mind.

SEC Probes Citigroup Bond Funds

The SEC subpoenaed several former in-house brokers as part of an investigation of Citigroup (C) debt funds. The funds in question borrowed heavily and invested in mortgage bonds and municipal bonds, The Wall Street Journal said without naming its sources. The funds%u2019 value slumped by as much as 77% during the financial crisis, leading Citigroup to offer share buybacks that would reduce investor loss to about 61%.

Why China's 'Nuclear Option' Isn't So Scary

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 suggest that China's power in this regard is overrated.

Bonds Are King, but Stocks May Be the Better Move

The amount of money sitting in bond funds is simply staggering: $450 billion has flowed into those funds since April 2009. But investors, some fearful, others just apathetic, may be missing out on the promise of much better returns offered by equities.

Wednesday's Stock Rally Is a Warning to Bond Bulls

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.

How to Avoid the 10 Biggest Investing Mistakes

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.