Word: bonding
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Dates: during 2000-2009
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...people believe stocks are anything but a slam dunk, even though prices fell over the past three years and we appear to be in the early stages of a recovery. Bond prices are sliding, and higher interest rates are signaling a slowdown in real estate. So where can investors expect the best returns over the next 12 months and beyond? TIME brought together a diverse group of investment experts to probe the question, and their answers may surprise you. Bonds have fallen enough to be a bargain--at least until the recovery really takes off. But beach houses to rent...
TIME: Nevertheless, we're happy to have you. What's your view of this recovery? Bond yields are rising, suggesting we're firmly on the mend...
LEVKOVICH: Let's understand what's happening. In May, [Alan] Greenspan got up in front of Congress and said he will use nonconventional tools to fight deflation. Bond prices soared, and yields plunged, because that meant if worse came to worst, the Treasury would buy long-term bonds. Then in testimony in July he basically took that promise off the table, and everyone sold Treasuries...
TIME: So you don't think we're getting a strong signal from the bond market that the recovery is here...
SEYMOUR LOTSOFF: In fact, bonds are probably not a bad investment here because of this correction, which has been overdone. Low-grade corporate bonds should do well. As the economy kicks in, you'll have a problem, but you can address it at that point. If the economy doesn't take off, you can stay in these bonds longer. I'd play it through junk-bond mutual funds...