Now that it seems too late to join a flight to quality in gov't bonds, where would you put new money (bondfundwise?). And would you take old money out of treasury bond funds to avoid a flight back toward risk taking?
I gather there is little clarity on whether long bonds will suffer from inflation from gov't printing rescue money vs gain from deflationary business slowdowns. Are corporate or emerging mkt bond funds discounting too much risk of default?
Well, some of these questions are unanswerable as usual, but there some of the talking heads on TV seem to agree there are historic opportunities in bondland somewhere, which I find hard to evaluate.
P.S. The Economist magazine had a great summary of how modern finance & credit markets evolved over the last 35 years into the instruments you hear now in the news. A series of stepwise innovations, often pleasing both the buyers and sellers, but with vulnerabilities for a future perfect storm:
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