“It appears that we are in the early stages of a generational shift favoring equities over bonds. While we may have some periodic setbacks, equities will likely outperform bonds for a decade or more. Many investors are becoming disillusioned with the low yields available on bonds, especially U.S. T…
Interest rates may continue at low levels for quite awhile with deflation being a live risk, says Roger Bootle, author and managing director of Capital Economics.
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.