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Do Not Underestimate Fixed Income
August 24th, 2010 by admin
Without question, the fixed income asset class is currently out of favor due to the perceived risks involved with investing in this area in a time when interest rates are expected to increase. However, there is a lot of value to be found in bond funds, regardless of what will happen to rates in the next three to five years. Just as equities can be oversold, so too can bonds and there is definitely a lot of this going on right now as people start shifting from bonds and into the equity markets. Who cares if the rest of the world is right; you need fixed income for a balanced portfolio anyway, why not get in at a discounted price?