Stock Market Volatility Managing Director Ian A. MacKinnon has headed Vanguard's Fixed Income Group since its creation in 1981. Investors were attracted by high short-term yields and were leery of stocks, given their poor performance in the 1970s. The following article is an expanded version of the In The Vanguard interview.
Some individual investors forgo bonds and invest only in stocks.
Interest rates have been rising over the past year. The Federal Reserve Board raised short-term rates six times. Corporate bond yields are much higher than Treasury yields. The current economic expansion is the longest ever from March 1991 to the present. Some individual investors forgo bonds and invest only in stocks.