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.
Overspending and impatient selling are two moves that can prematurely drain retirees' portfolio income, warns financial columnist Gail MarksJarvis, who offers strategies to avoid these pitfalls.
Inflows to fixed-income products continued in November on account of market-volatility worries, while equity outflows this year could surpass 2008 levels.
Investors should keep their expectations in check with few asset classes looking particularly attractive and complacency in the marketplace, says Allocation Fund Manager of the Year David Giroux of T. Rowe Price Capital Appreciation.
Flows to muni bond mutual funds, though still negative, recovered much of their lost ground over the previous two weeks.
The high-quality bond market began 2013 with a sell-off, posting its worst weekly performance since March 2012, LPL bond expert Anthony Valeri reported.
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