Pacific Investment Management Co.'s Bill Gross, manager of the world's biggest bond fund, expects stocks and bonds to return less than 5 percent in 2013 as high unemployment persists, he wrote in a Twitter post.
Bonds are a better option than cash and less volatile than stocks , but investors should be mindful of headwinds and possibly rethink their fixed-income allocations, says Morningstar's Christine Benz.
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.
Morningstar's vice president of research weighs in on PIMCO's target-date allure, active management in bonds versus stocks , and echoes in the buy and hold debate.