Take Two®

News and culture through the lens of Southern California. Hosted by A Martínez

Stock market surge has investors fleeing bond market

by Take Two®

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A trader works on the floor of the New York Stock Exchange on January 2, 2013 in New York City. A day after U.S. lawmakers reached a last minute agreement to avert the fiscal cliff, U.S. stocks surged as traders around the globe felt renewed confidence over global markets. Shortly after the opening bell, The Dow Jones Industrial Average rallied more than 230 points, or 1.7%. Spencer Platt/Getty Images

By many measures, investors are starting to feel better about the economy. Congress dodged the fiscal cliff (at least for now), housing prices are looking a little better, and the stock market is climbing.

But just like anything, there's always a negative side to things. That strong stock market has investors fleeing bonds. Just last month, they moved more than $70 billion out of bond funds into stocks.

Is this a sign the bond bubble is about to pop? Paddy Hirsch, senior producer of Personal Finance at Marketplace, stopped by the studio to help explain all this. 

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