Investors bolted out of bonds last month, yanking a record $80 billion from bond mutual funds and exchange traded funds, according to TrimTabs.
Those who fled were spooked by Federal Reserve chairman Ben Bernanke’s recent announcement that the central bank could start pulling back on its bond purchase program later this year.
While fears that the bond market will collapse when the Fed begins reversing its stimulus programs are overblown, Oliver Pursche, president of Suffern, N.Y.-based investment advisory firm Gary Goldberg Financial Services, says bonds are still “very overvalued.”
In fact, many of his firm’s clients have light exposure to bonds.
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