Sunday, December 23, 2012

Panic in the stock market

Investors flee from the stock market to the bond market when there's panic in the stock market. They return when panic subsides. But this can take time. The Crash of 2008 created a panic of unheralded proportions for this generation of investors. Yet, even today, four years later, money continues to pour into the bond market even as stocks have risen and the stock market has recovered since the Crash of 2008.

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