Updated Wednesday, October 22, 2014 as of 9:46 PM ET

Why Bond-Bubble Fears Are Overblown

Last year, bonds declined in value, and some surveys revealed that advisors were reducing their bond allocations.

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Comments (3)
How naive!
Posted by Gerard S | Thursday, May 15 2014 at 11:51AM ET
"Bubbles can only happen to risky assets?" That is a joke, or....a very foolish idea posited by someone who should think before they write. The wrongful assessment of risk is always part of a bubble (remember it is "different this time" in 2000 and houses always go up in value in 2007). Investing is always about expected return on investment and the risks involved. Bonds can fail to keep up with inflation for very long periods of time and that is their true risk.
Posted by Ted S | Thursday, May 15 2014 at 12:50PM ET
There are many strategies that can be utilized to manage a bond fund. Laddering is only one of them. Have you ever hears of a "barbell" strategy? If that is utilized, it could be much more volatile. Know what you are buying before you buy it
Posted by David W | Thursday, May 15 2014 at 2:54PM ET
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