BOND FUND BUBBLE

摘要

In 2009 investors were warned about bubbles: A bub-ble in Treasuries, a gold bubble and, finally, warnings of a rapidly expanding bubble in stocks. But I'm here to tell you about a monster bond mutual fund bubble forming. It's brought to us by the Federal Reserve's 0% interest rate policy. Whether the flood into bond funds of all types was an intended consequence or not, it's now a flood that could go just as quickly the other way. Investors couldn't tolerate, let alone live off, the substandard money market rates and CD yields. These paltry rates on CDs tell me that the banks don't need our money. They're still not lending.