But yesterday, inflationary fears seemed to arise again.
But whether or not to convert becomes a particularly tough call this fall because inflationary fears suggest that rates are headed for a rapid rise.
For example, as inflationary fears rose along with commodity prices, precious-metals funds, on average, returned nearly 21 percent.
The day's drop, by lessening inflationary fears, soothed the stock and credit markets.
If that were the case, a sluggish economy might temper inflationary fears in the short-term and give the bond market a lift.
The news, which immediately raised some inflationary fears, was enough to send bond prices sharply lower.
Stock prices continued to weaken yesterday amid strong computerized selling brought on by new inflationary fears.
Such actions would raise inflationary fears and lift interest rates.
"Put all of that together, throw in the lower bond market and the inflationary fears and you have a good case for a setback."
Investors jumped on inflationary fears and the month's end as reasons to take profits.