Thu, 12 Sep 2013
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Morningstar's Bob Johnson on the Federal Reserve's rationale for continuing its bond -buying program and what it means for interest rates, the economy, and the Fed's options going forward.
August saw continued big bond - fund redemptions and a divergence of institutional and individual investor flows in emerging - markets funds.
Beyond noting their stock / bond split, investors should also check their small-cap exposure, overall rate sensitivity, and vulnerability to the wealth effect.
The outlook for bonds is just as cloudy as ever, but Morningstar's Miriam Sjoblom and Marta Norton offer helpful tips for setting the right expectations and creating a game plan in today's challenging bond market.
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