With interest rates close to all-time lows, and major stock indices hovering just below all-time highs, the hesitancy of many people to invest in either stocks or bonds is easily understood. After all, it seems axiomatic that if stocks are at all-time highs, investing now most likely sets you up as the last sucker to get in just before the bottom falls out. Similarly, if bond prices and interest rates move inversely, buying bonds when rates are depressed means that if rates move up in a sustained fashion, one's money in bonds will likely take a beating. Faced with those perceived likelihoods, can anyone be blamed for not wanting to invest his or her hard-earned cash?
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