{"id":32455,"date":"2012-09-20T18:39:06","date_gmt":"2012-09-20T22:39:06","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=32455"},"modified":"2012-09-20T18:39:06","modified_gmt":"2012-09-20T22:39:06","slug":"unsuspecting-bond-fund-investors-are-set-up-for-a-shock","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/09\/20\/unsuspecting-bond-fund-investors-are-set-up-for-a-shock\/","title":{"rendered":"Unsuspecting Bond Fund Investors Are Set Up for a Shock"},"content":{"rendered":"

Why risk in the rebalanced portfolio is ramping higher <\/span>
\n September 20, 2012 <\/span><\/h3>\n

By Elliott Wave International<\/span><\/h3>\n

During market pullbacks, financial advisors use a boilerplate response: “Let’s rebalance the portfolio.” Investors have heard that one for years.<\/p>\n

The recommended allocation varies depending on a client’s age and risk tolerance, but it typically involves shifting funds from stocks to bond holdings.<\/p>\n

The evidence shows that many investors did just that in response to the 2007-2009 financial crisis – at the fastest rate in decades. Bond fund assets have risen eight-fold<\/strong> over the past 22 years.<\/p>\n

Investors now hold more than $800 billion in bond funds. Just take a look at this chart from a June 6, Elliott Wave Theorist<\/em> Special Report.<\/p>\n

\"\"<\/p>\n

Investors who increased their bond allocation probably feel<\/em> financially safer.<\/p>\n

After all, bond funds have been more stable than stock funds, and they provided higher returns than money market funds.<\/p>\n

Yet extrapolating the past into the future is often a major mistake.<\/p>\n

During the coming collapse in the value of debt, investors’ interest in diversified funds of all stripes-debt, equity and commodity-will fall precipitously. The drop will come as a shock, especially to those who “rebalanced” from stocks and commodities to bonds after the markets panicked in 2008.<\/p>\n

The Elliott Wave Theorist<\/em>, Special Report, June 2012<\/p>\n<\/blockquote>\n

What should safety-conscious investors do?<\/p>\n

The Theorist<\/em> Special Report offers a clear answer, one that’s just as relevant now as when it was published in June.<\/p>\n

You will also learn about a striking parallel between the bond market of 1929-1932 and today and what to expect next<\/strong>.<\/p>\n

 <\/p>\n\n\n\n
\"\"<\/a><\/td>\nFree 10-Page Report: Major Top in the Bond Market on the Way<\/strong> Prechter’s message to bondholders today: Beware.<\/strong>Prechter warned investors about looming destruction in tech stocks, real estate, blue chips and commodities — all at a time when conventional wisdom considered them “safe.”<\/p>\n

Here’s what he’s saying now: Whether you have your money directly in bonds or your mutual fund does, your savings could be at risk.<\/strong><\/p>\n

You’re just one click away<\/em>. Follow this link for instant access to the first four pages of Prechter’s free report.<\/p>\n

Read the first 4 pages now, zero obligation, no email address required >><\/strong><\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

This article was syndicated by Elliott Wave International and was originally published under the headline Unsuspecting Bond Fund Investors Are Set Up for a Shock<\/strong><\/a>. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why risk in the rebalanced portfolio is ramping higher September 20, 2012 By Elliott Wave International During market pullbacks, financial advisors use a boilerplate response: “Let’s rebalance the portfolio.” Investors have heard that one for years. The recommended allocation varies depending on a client’s age and risk tolerance, but it typically involves shifting funds from … <\/p>\n

Continue reading “Unsuspecting Bond Fund Investors Are Set Up for a Shock”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-32455","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/32455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=32455"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/32455\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=32455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=32455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=32455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}