Huge Risks for Fixed Income Investors

Professor Siegel outlines the very real risks bond investors have in the market today. Investors scared of stocks have rushed into bonds and bond funds that carry a.) low yields and b.) huge capital loss risks. Because so few investors understand the true risks in these "safe" investments the upcoming period could be very traumatic . The proper role of fixed income is to act as a stabilizer or smoother of portfolio volatility. That is how we use it here.