Cart

0

Economy, Investing, Stocks

Follow The Money: Investors Move From Stocks to Bonds

“Unable to stomach turbulence driven by the escalating conflict between China and the United States, and leery of a darkening outlook for the economy, investors have been pulling money out of the stock market and buying bonds, the traditional place to park cash during times of uncertainty.

The rush has turned parts of the ordinarily boring bond market into a better bet than stocks. The gains are unusual; by some measures, bonds are having their best year since 2002. And they do carry risks for investors who are buying now. If the concerns that have lured investors into the bond market dissipate — because Washington and Beijing reach a trade deal, for example — then bond prices could start to fall…”

The link above leads to the original article. Basically what this article is saying is in the short term investors prefer bonds over stocks because of uncertain geopolitical relations.

Leave a Reply