Home>Liz Ann Sonders Asks: Is The Stock Market Home To The New Vigilantes?
Liz Ann Sonders Asks: Is The Stock Market Home To The New Vigilantes?
Evan Simonoff's FA Blog
Thu, 8 Nov 2012
Judging from Wednesday's 312-point drop in the Dow Jones Industrial Average, the equity market could be replacing the bond market as the new "vigilantes" who try to drive some sense into Washington, says Schwab's chief investment strategist Liz Ann
Portfolio Solutions' Rick Ferri expects stocks to return 7% and bonds to yield 2% during the next decade, and he also offers tips on how investors should handle their fixed-income positions.
October data show continued inflows for bonds (including riskier fixed-income assets), while investors withdrew money from U.S. stock mutual funds and ETFs.
Morningstar's Dave Sekera doesn't see a repeat of 2008's bondmarket turmoil, but bonds are pricing in a low- to no-growth scenario for the U.S. economy.