Matthew C Klein, Columnist

The Year of Trading Dangerously

Everyone predicted that 2014 would be a great year for stocks and a terrible year for bonds. So far, it's been the exact opposite.

April 25, 2014 at 6:40 PM UTC

By Matthew C Klein

Matthew C. Klein writes for Bloomberg View about the economy and financial markets. He previously wrote for the Economist magazine and its economics blog, Free Exchange. Before that, Klein was a research associate at the Council on Foreign Relations, where he spent more than two years studying the history of the Federal Reserve and the intellectual history of monetary economics for an upcoming book by Sebastian Mallaby. He also worked at Bridgewater Associates, where he studied the economies of Central and Eastern Europe and advised institutional investors on asset-liability management. Klein has a bachelor's degree in history from Yale University. Originally from Chicago, he lives in New York.

So much for all those forecasts about the stock market this year. Photographer: Chris Ratcliffe/Bloomberg

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

A funny thing happened on the way to the Great Rotation from bonds to stocks: Fixed-income assets have crushed equities so far this year.

That's the exact opposite of what everyone was predicting at the end of 2013. When the CFA Institute asked its members which asset class would have the highest total returns in 2014, chartered financial analysts overwhelmingly thought that stocks would do better than bonds.