After a years-long bull market, investors' equity stakes are near peak, which calls for caution and rebalancing, says Vanguard's Fran Kinniry.
The outlook for bonds is just as cloudy as ever, but Morningstar's Miriam Sjoblom and Marta Norton offer helpful tips for setting the right expectations and creating a game plan in today's challenging bond market.
September and third-quarter asset-flows data show that investors remain cautious of interest-rate risk and a fully valued stock market, and instead prefer nontraditional bonds and foreign equities.
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.
Mind the yield curve.
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