Inflows to fixed-income products continued in November on account of market-volatility worries, while equity outflows this year could surpass 2008 levels.
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.
Morningstar's Christine Benz demonstrates how our Tax-Equivalent Yield Calculator can help you determine whether you're better off investing in taxable or municipal bonds after adjusting for munis' tax-exempt status.
Morningstar's director of fixed-income research offers a checklist for specialty bond shoppers and a few of his personal favorites among the noncore categories.
Investors sent money to municipal bond mutual funds for a sixth consecutive week, though at a decreased pace.
Municipal bond mutual funds recorded a second consecutive week of strong flows, as funds that report their flows weekly saw $1.44 billion in inflows for the week of Jan. 16.
Inflows returned to the market for municipal bond mutual funds with a vengeance, at $1.55 billion for the week ended Jan. 9.
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