Investors Are Prisoners of Their Own Memory

Investors Are Prisoners of Their Own Memory
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For years on end, pundits have been predicting the collapse of the bond market, and recently such calls have reached a crescendo – with bond king Bill Gross of Pimco being the latest to sound the death knell.

But investors show almost no inclination to avoid the impending doom: A new survey of investors by BlackRock found that 57% are “worried about rising interest rates” and 53% think bonds are riskier today than a decade ago. Yet fewer than 7% said that “identifying the bond investments that are right for you” would be a major focus for them over the coming year – and 60% said they wouldn’t focus on it at all.

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