Analysis: Investors opt for bond funds instead of equities

08/18/2009 | Reuters

Because the financial meltdown remains fresh in investors' minds, many, including retail and institutional investors, are pouring money into bond funds rather than equities. "There is a revolutionary rethinking of how people invest," said Michael Kastner, a senior managing director at Sterling Stamos. While investors are looking for a safer investment option, the drive toward bonds has also been fueled by their returns.

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