Buying Opportunity Has Improved For Investors Willing To Take On A Bit More Risk In Exchange For Higher Returns

Investors put a huge sum of money in bonds over the past year and a half as they sought refuge from the more volatile stock market. Another driver: the needs of a growing number of retirees who want steady income and can’t stomach the stock market’s ups and downs.

However, bond investors face some big threats. Interest rates are near zero and can go nowhere but up. This would trim bond prices and erode a key source of bond returns. Long-term inflation is also a risk. And so many investors have shifted into bonds that there’s talk of a bubble.

Some recent data on bonds…