Boston -- This year, investors are flocking to the fixed income market in droves as evidenced by weekly updates from the Lipper, which revealed that investors withdrew $2.4 billion from equity funds for the week ended Oct. 4 in search of a safe haven. But is fixed income so safe?
Not so, according to David Kelly, chief global strategist at JP Morgan Funds. Kelly, in a keynote address to industry participants at the FundForum USA CEO Though Leadership Summit in Boston, said that investors are pouring money into cash and fixed income markets despite rising risks and low returns. “People are putting too much money into fixed income because they don’t understand that there is risk in the bond markets, and that scares me,” he said.