Shell Shock?
Surprise: Putting your nest egg in bonds may no longer be safe.
Billions of dollars have flowed out of stocks and into bonds over the past 18 months, and it's easy to see why. While stocks dumped yearly double-digit losses on investors between 2000 and 2002, bond portfolios trumped the major stock market indexes three straight years, the first time that's happened since FDR had nothing to fear but fear itself. Investors who sought safety in fixed-income over the past year, though, should be afraid of something more tangible--bond prices may be on the verge of a nasty downturn themselves.
The problem is that investors by the millions moved sizable portions of their nest eggs into bonds at what could turn out to be the worst possible time. In a fool-me-twice scenario, an investor who took a big hit from stocks finally throws in the towel and moves her money into bonds just in time to take another hit, this time from supposedly safe bonds.
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Entrepreneur Editors' Picks
-
These Co-Founders Are Using 'Quiet Confidence' to Flip the Script on Cutthroat Startup Culture and Make Their Mark on a $46 Billion Industry
-
My 7-Year-Old Daughter Started Selling Eggs. Here's What She Taught Me About Running a Startup.
-
Why You Need to Become an Inclusive Leader (and How to Do It)
-
Career Transitions You Can Make in Your 40s and 50s
-
Billionaire Naveen Jain Is an Expert at Disrupting Fields He Has No Experience In. His Secret Sauce for Building Multi-Million Dollar Companies? 'You Have to Come as Naive.'
-
4 Principles to Develop Next-Level Leadership at Your Company
-
This Filipino American Founder Is Disrupting the Beverage Aisle by Introducing New Flavors to the Crowded Bubbly Water Market
