[lbo-talk] Investment question...

Doug Henwood dhenwood at panix.com
Sat Jan 17 15:03:37 PST 2004


joanna bujes wrote:


>Why is it that financial pundits are saying that fixed income funds
>are a bad idea going forward? If the current decade 2000-2010 is
>similar to the 1970-1980 decade, which it seems to me it kind of is,
>why wouldn't a fixed income fund do well?

Interest rates are very low. Bonds were in a bull market from 1981 until, oh, mid-June, and haven't fallen much since. Interest rates could go lower, esp if you believe in a depression/deflation scenario, but otherwise, risk may exceed potential reward.

Doug



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