The bull market for fixed income is over 30 years old, and the current crop of investors may be in for a rude awakening when it finally turns sour, according to the Wall Street Journal.

The publication notes that since the end of 2007, there has been growth of 101 percent, or $1.7 trillion, in assets held by bond mutual funds in the U.S., according to the ICI. And that doesn't include several hundred billion dollars more that has poured into exchange-traded funds such as the iShares Investment Grade Corporate Bond ETF [profile]. During the same period, assets in stock mutual funds have dropped by 11 percent, or about $715 billion.

However, the article argues that a drop in bond values may be much more alarming and yet easier to act upon today for bond investors who generally own them through mutual or exchange-traded funds. 

Edited by: Tommy Fernandez


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