Many experts now believe bonds are riskier than stocks and warn of a bond bubble ready to burst. A better understanding of both the likelihood and impact of such a bubble would have clear implications for advisors, who must face two key questions: how much bond exposure clients should have, and whether it is prudent to shorten durations to soften the impact of rising rates.

A rate increase is widely expected: Despite media quips about “QE Infinity,” it is just not feasible for the Fed to continue buying its own intermediate- and long-term bonds forever.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access