MarketWatch – Europe’s high-stakes debt troubles, persistent U.S. job and housing market weakness, and China’s sputtering global-growth engine sent bond mutual-fund investors scurrying for lower-risk fixed income categories during the second quarter.
In a clear reflection of global market jitters, bonds beat stock returns by the widest margin in nine years. It’s treacherous territory for fund managers who face the complexities of added economic fuel from low rates and yet, scant inflation. A spotty corporate recovery and the less-than-confident actions of governments trying to rein in deficits complicate the scenario.
