The lingering low-rate environment in the U.S, Eurozone, Japan and some other nations has many yield-seeking investors feeling stuck in the mud. At its April policy meeting, the Federal Reserve pledged to keep its key short-term interest rate (the federal funds target) “exceptionally low” at least…
Employment improvement, cooling commodity inflation , and lower interest on debt should allow consumer spending to sustain its moderate growth trajectory, says Morningstar's Bob Johnson.
The $700 billion that has flowed into taxable- bond funds in the last five years is larger than flows into U.S. equity funds in the late '90s, but investors today seem to be reacting to fear and not chasing performance.