Interest rates seem likely to rise soon. That will cause bond prices to step down a few notches. I would think bonds will beat stocks only if some major event causes stocks to crash.Its an election year. The administration would have us believe that the recovery is continuing quite well. Rising interest rates might cause hesitation in the rate of increase, but I would be surprised at a major downward correction.On a percentage return basis, stocks will probably not do as well this year as last year. The gains will be selective. And some will continue to struggle. But I still think stocks will out perform bonds--though maybe the differences will not be large.
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