EDITOR'S NOTE
If stocks' swift recovery is a sign that the bull market is back on track from the coronavirus scare, then why are a record number of investors piling into the safety of bonds?
Last week set a new standard for cash flowing into fixed-income funds with $23.6 billion of inflows, according to Bank of America Global Research. If that keeps up, the year will see $1 trillion of inflows for the $10 trillion already in global bond market funds, Jeff Cox writes. ![]() Investors are flocking to bond funds for their steady returns as a buffer against volatility, which is expected to keep them on edge amid the worsening epidemic and a slew of political events ahead. As yields have fallen lower, prices have risen, providing principal gains for bondholders.
Yet the stock market keeps climbing higher, even if many investors are missing out by flowing into bonds.
President Donald Trump is considering ways to incentivize U.S. households to put more money into equities, Kayla Tausche reports.
The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k), which seems like a plan to directly boost the stock market.
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Jumat, 14 Februari 2020
Stocks gain for week | White House plan for stock market | Tesla raises $2 billion
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