Investors faced whopping losses as a result of the economic recession and the deep scars left by the financial insecurity of the past 18 months had most individuals investing in relatively safe bonds in 2009.

But “investors now appear to be easing up on the fixed income peddle," according to David Falkof, a fund analyst at Morningstar. He said although money flowing into bond funds soared to over $40 billion in August, September and October, by November inflows for taxable and municipal bond funds dropped to $33 billion.

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