http://www.zerohedge.com/news/investors-nostalgic-logical-markets-boycott-new-centrally-planned-normal"Question: If interest rates rise, what will typically happen to bond prices? Only 21% of the 2009 FINRA National Financial Capability Study knew that the answer was “They will fall.” The same question to a group of active U.S. military got only a 30% correct response rate. In a 2010 Northwest Mutual survey, only 41% knew the relationship between interest rates and bond prices. This may go part of the way to explaining why fixed income products - mutual funds and exchange traded funds, not to mention individual bonds – still enjoy strong money flows despite record low interest rates. What happens to retail investor confidence in these investments when interest rates rise is, therefore, impossible to know."
Comments
I do recall the NW, 2010 survey.
Quoted from your write: "This may go part of the way to explaining why fixed income products - mutual funds and exchange traded funds, not to mention individual bonds – still enjoy strong money flows despite record low interest rates."
>>>>>Our house may only hope "when" the great bond run begins, that we are not far behind the big trading houses and enough remaining retail investor support continues to allow us to have a decent exit, without incurring much downside.
Thanks,
Catch