Bond Managers Like Stocks

The year 2006 is off to a roaring start for stocks. And with fed funds futures predicting only one more rate hike from the Federal Reserve -- maybe two at most -- even fixed-income managers are saying this could be the year for stocks.

"Even though I've spent most of my career in bonds, I'm thinking that over the next year to two years equities should outperform bonds," says Jerry Webman, director of fixed income at OppenheimerFunds.

That's because like so many economists and money managers, Webman believes that the fed funds rate will top out at 4.75%. ...