"Bond Funds Running Low on... Bonds"
http://online.wsj.com/article/SB1000142 ... 44212.html
The number of bond funds that own stocks has surged to its highest point in at least 18 years, another sign that typically conservative investors are taking bigger risks to boost returns.
This reminds me of the situation back in 1999 when "growth" mutual funds suddently morphed into technology funds. It seems like all of them owned the same few stocks - JDS Uniphase, Cisco Systems, Lucent Technologies, etc. I remember that people were shocked when their growth funds tanked like tech funds did.The $21 million Forward Income Builder fund, run by Forward Management LLC in San Francisco, had almost no money in stocks at the middle of last year, according to Morningstar. As of the end of February, it had nearly 49% invested in stocks.