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A trader works on the floor of the New York Stock Exchange (NYSE) just after the opening bell, October 10, 2013.
A trader works on the floor of the New York Stock Exchange (NYSE) just after the opening bell, October 10, 2013.
(Mike Segar/Reuters)

Bonds: not so scary after all?

So much for that great rotation.

A year ago, as the U.S. economy started to pick up steam, there was a roaring consensus that the heyday for bonds was coming to an end. Stocks, strategists said, were where the big money could be made.

There’s no question that it worked for a while. Investors who bought that theory made some big bucks, especially if they invested in U.S. equities. The S&P 500 is up about 20 per cent in the past year.