News this week points to increasing investor confidence.
A survey from John Hancock, a financial services group, found that investor sentiment is at the highest it has been during the past three years. More investors think now is a good time to invest in stocks than did at the end of last year -- 58 percent now to 48 percent then.
"I can see it among my clients and the people I talk to. Suddenly, everyone is convinced the stock market is going up, and related to this, that bonds are going down," says Curtis Chambers, Certified Financial Planner, founder of the Chambers Financial Group in Clearwater, Fla.
"It is common for investors to become confident when the market does well, and fearful when it is on the retreat. The irony is, this overconfidence often causes investors to buy when the market is high and sell when it's low," he says.
Bonds are down
In another sign that investors may be increasingly willing to move out of relatively safer investments, The Wall Street Journal reported on Tuesday that the Barclay's U.S. Aggregate Bond Index declined 0.12 percent in the first quarter of 2013. That is the first negative move from the bond index since 2006, the Journal reports in the story, "Key bond index gets bitten."
With notable headway being made on the housing front and unemployment, it may be the beginning of the end for bonds. When the Federal Reserve raises rates, prices on existing bonds will go down. That is still unlikely to happen for a while, but the Journal reports that analysts expect yields on the 10-year Treasury note to increase to 2.5 percent this year.
On Tuesday, the yield on the 10-year Treasury was 1.88 percent, according to the Treasury Department.
Do you feel more confident in the stock market?
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Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.