What happened to all the buy and hold bond investors? See table below.
The latest long term fund data from ICI shows bond investors are doing what most investors do. Flee an investment at the first signs of distress. Taxable bonds lost about 4% of assets in June and looks like they loose another 3% or so in July. Muni bond funds lost about 5.5% of assets in June and will probably top that in July.
These are not the signs of patient long term buy and hold investors practicing asset allocation. Buy and hold is a great investing strategy IF you can stick with it during good times and bad. Problem is most investors can’t.