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The article presents an outlook for the U.S. mutual fund industry for 1978. The robustness of the industry in 1977 was helped by factors such as how the popularity of municipal bond funds and corporate bond funds assisted in the selling of more shares than investors redeemed. Many mutual fund portfolio managers believe that returns will be higher because of the continued growth of the U.S. economy and the manageability of inflation and interest rates. The top-performing funds of 1977 include United Services, Strategic Investments, and Resources Growth.

The article discusses the bear market in the U.S. bonds market, focusing on the call money rate, interest rates paid out on stocks, and the decline of bond markets in general. Other topics include the decline of U.S. Governmental bonds, the reduced price of corporate bonds, and the rise in demand for credit for and capital investment to help fuel economic growth.

The article discusses the good condition of the U.S. economy and stocks, amid the economic woes in Europe. According to Wells Capital Management chief investment strategist James Paulsen, the U.S. economy is very healthy in 2012 unlike in 2010 and 2011. It says that the U.S. economy is already less vulnerable to decline in the markets since its recovery has become more mature. It adds that the corporate bonds and stocks in the U.S. are found to be attractive.

The article discusses a report headed by Moody's senior credit officer Laura Acres on Asian high-yield corporate credit, released on January 20, 2012. The report notes that Asian high-yield corporate bond issuance will remain weak due to the volatility of credit markets stemming from concerns over European countries and U.S. economic growth. The report shows that the number of high-yield rated issuers were 97 in December 2011, down from a peak of 106 in September 2011.