The devastating market correction of 2008/2009 and the accompanying global economic recession have left many investors feeling skittish about stocks.
While some have stood by with a ‘buy and hold’ approach, many abandoned equities and flocked to fixed income investments, such as money market instruments and bonds.
According to a report by Barron’s, in the United States, since the start of 2010, more than US$274 billion has flowed into bond funds, while net $35 billion has been redeemed from equity funds.
It’s a natural human tendency to react to short term market fluctuations. But could investors be taking on new risks they are unaware of?
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