Money Managers Aren't Yet Leaving Bonds for Stocks --- Balanced Funds Won't Move Into Equity Investments As Quickly as Expected
NEW YORK -- Managers of investment funds whose assets routinely are switched back and forth between the stock and bond markets aren't yet rushing into stocks.</br></br>At least for now, these gentlemen (and women) prefer bonds.</br></br>Managers of such balanced funds say continued low inflation, tempting bond yields and the economy's still-moderate expansion have sidetracked their plans to move aggressively into equity investments.</br></br>"I had hoped to be doing much more stock investing than I'm doing now," says Cynthia Flowers, portfolio manager of National Securities & Research Corp. of New York's $125 million balanced fund.</br></br>"But many stocks are overvalued, the fundamentals aren't good, and while I'm struggling to find attractive stocks to buy," the risk-to-reward ratios on bonds are quite attractive, she says.