Investors Flee Stocks for ... The Next Bubble?

This USA Today column caught my eye. Investors believe bonds are safer.


Here.

Near historic low yields.

After a major bond rally.

So, investors got caught up in the 90's stock bubble. "Just click it in there, Mr. B" (remember Ameritrade commercial?). That wiped them out.

Investors got caught up in the housing bubble. "Sure, the mortgage is more than you make in a month, sir. But you can just flip the house in a month or so and make tens of thousands of dollars. No money down. Just sign here. And say, as you were signing, your equity went up $40,000. Would you like to borrow that out via a home equity loan and get a new car or go on vacation? That's your money. Unleash that equity!" Well, yeah.

Now, bonds are safe. Uh huh. And they're probably in bond funds, right? "After all, sir, you need the experience of a Bond manager and diversification. And you know, these short term funds only yield a percent. Let's go out a little longer for more yield."

Well, I think we know what's coming next.