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.
With more big names raising concerns about overheated T-bonds, what's an investor with a Treasury-heavy portfolio to do? Some ideas: Consider corporate bonds or perhaps stick with government debt, but only short-term securities.
Many analysts thought U.S. rates would be rising by now. But with the European debt crisis, they've fallen as investors fled to safety. What happens next is hardly clear, so it's vital to have a cogent plan. And that doesn't mean staying in cash.