Once Investors Flee Bonds, Equities Will Be Ready For Their Close-Up

March 15, 2010

NEW YORK -- Experts predict equities and equity mutual funds could have a double-digit rally later this year -- if investors respond as they should and flee a future correction in the bond market. Retail and institutional investors still leery of the stock market have been pumping billions of dollars a week into municipal bond funds (see related story, page one), causing bond prices to soar and stock prices to struggle, but some portfolio managers say they're worried that the natural balance between stocks and bonds has swung off-kilter and may be headed for a short-term price correction.

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