Relative to history and expectations, bonds are overpriced in general, says Loomis Sayles Bond manager Dan Fuss, who is taking a selective approach with caution toward credit risk.
Low bond yields have called into question the safety of the 4% withdrawal strategy, while other avenues for extra retirement income have their own pros and cons, says Morningstar's David Blanchett.
Investors should dig into their bond portfolios to understand all the places their managers are hunting for yield, says Morningstar's Eric Jacobson.
Buying unhedged foreign bonds introduces additional risk and volatility in the part of your portfolio meant to provide a ballast against risk, says Vanguard's Chris Philips.
Morningstar's director of fixed-income research offers his tips for selecting a solid core bond fund along with some of his favorite choices.
Taxable-bond funds led open-end asset flows in February, with investors showing interest in emerging-markets bonds and bank-loan funds.
October data show continued inflows for bonds (including riskier fixed-income assets), while investors withdrew money from U.S. stock mutual funds and ETFs.
Inflows to fixed-income products continued in November on account of market-volatility worries, while equity outflows this year could surpass 2008 levels.
These low-maintenance funds serve as great core investments.
Money is likely to pour into junk bonds until it's too late.
Tim Gramatovich is the CIO of Peritus Asset Management, and the Portfolio Manager of the AdvisorShares Peritus High Yield ETF (NYSE: HYLD)
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