October data show continued inflows for bonds (including riskier fixed-income assets), while investors withdrew money from U.S. stock mutual funds and ETFs.
Flows have been high into developing-markets debt ETFs as investors seek more yield, but several funds are apt to manage the credit risks.
With very low interest rates, as well as uncertainties about inflation and the muni market, it's time for investors to really rethink the purpose of their fixed-income allocations, says Fidelity's Christine Thompson.
With more than 50% of the global market cap being outside the U.S., investors are missing good opportunities if they take a domestic-only approach, says Morningstar's Marta Norton.
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