|
|
Survey Finds Investors Don't Understand Risks of Bond Investing
Investors have pumped five times as much money into bond funds this year as into stock funds. This requires skill in a falling interest rate environment.
A new survey by American Century Investments suggests that investors don't understand bonds. For example, only 31% of those surveyed understood that when interest rates rise, bond prices generally fall. This is a critical relationship.
Likewise, only 13% of those surveyed knew that, generally, the longer the bond's maturity, the more sensitive its price is to changing interest rates. In fact, fully 41% were wrong in believing the opposite (that interest rate sensitivity declines with lengthier maturities).
Source: Wall Street Journal, November 9, 2001
|
About Us
|
News
|
Alerts
|
Articles
|
Caveat Emptor
|
SNSFE News
|
Contact
|
Search
Register
|
Free Opinion
Sponsored by James J. Eccleston, an attorney representing stockbrokers, financial planners and
investors nationwide in arbitration, litigation and regulatory matters, and a shareholder with the law firm
Shaheen, Novoselsky, Staat, Filipowski & Eccleston
P.C.(www.snsfe-law.com). This Web site contains material
of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment advisor when building and protecting your wealth.
All content Copyright © 2008 Advocate Capital Management, Inc. except where noted. All rights reserved.
20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400 | Fax: 312-621-0268
|
|
|
|
