I got this response to Joanna's question offlist.
This is not investment advice!
Mr. Coyle is correct in his response but I also wanted to expand on two
possible negatives facing fixed income.
1 - Fast approaching over supply of US Debt - 375B deficit last year,
projected 600B current year, and
I did not see the origin of this thread. But I assume the pundits
foresee higher interest rates ahead, in which case the value of the
bonds in the funds will drop. Value goes down as interest rates go up.
Gene
joanna bujes wrote:
Why is it that financial pundits are saying that fixed income fun
>Why is it that financial pundits are saying that fixed income funds are
a bad idea going forward?<
irrational exuberance?
Jim
Why is it that financial pundits are saying that fixed income funds are
a bad idea going forward? If the current decade 2000-2010 is similar to
the 1970-1980 decade, which it seems to me it kind of is, why wouldn't a
fixed income fund do well?
Joanna
