Investors Shift Away from Bonds

Investors Shift Away from Bonds

The rising stock market over the past several months has led to an expected pull back by investors in the bond market. According to reports, investors withdrew nearly four and a half billion from the bond market last week, and had pulled another eight and a half billion out of the market in the week before.

Part of the steam driving the sell off has been the pledge by the Federal Reserve, in November, to buy up about six hundred billion in assets. The strategy is just a part of the governments plan to help the economy recover. The shift in financial positions in the market is typical and will likely continue as the economy makes slow strides towards recovery, and the stock market continues to improve.