Leading mutual funds are now becoming bearish on the bull market on Wall Street, and are turning to bond funds, writes investment guru Mark Hulbert.
In his column on Marketwatch, Hulbert, editor and publisher of the Hulbert Financial Digest, Annandale, Va., says the bull market is now nine months old, which is weighing on the minds of investors.
“The bottom line? Though the top performers are not outright bearish on the stock market, they are not aggressively bullish either. They most definitely are not throwing caution to the winds. They are investing in government bonds,” says Hulbert.
This includes funds like:
— Vanguard GNMA
— Vanguard High Yield Corp.
— Fidelity High Income
— Vanguard Inflation-Protected
Funds haven’t completely forsaken stocks, especially the Fidelity Select Technology fund, writes Hulbert.
“But surprisingly, this skepticism towards the stock market is widely shared even among the advisers with the best long-term records,” writes Hulbert.
The move toward bonds is ongoing, even overseas, reports Bloomberg News.
Emerging-market bond funds collected $317 million in the week, even amid concern that Dubai government-owned companies will delay debt payments.
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