On the lower-risk end of the scale, returns averaged less than 1 percent for funds specializing in intermediate-term Treasurys as well as those investing in short-term Treasurys.
As for the market’s next moves, Lipper’s Roseen believes performance will remain strong as long as global stimulus programs continue to fuel short-term optimism.
But beyond that, it’s hard to say. After next month’s election, the president and Congress must resolve differences over getting the nation’s debt problems under control. Failure to reach a deal could trigger broad tax increases and automatic budget cuts, possibly leading to another recession. Even if that obstacle is overcome, there’s the risk that the Fed may have gone too far with its latest stimulus.
‘‘Over the long-term,’’ Roseen says, ‘‘we could see some inflationary runs.’’
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