Investors Shake Up Funds With Record Bond Love Affair
Retail investors in the U.S., burned by two market crashes in a decade, have shunned stocks for the longest stretch in more than 23 years, upsetting the balance of power in the $10.5 trillion mutual-fund industry.
Bond funds attracted more money than their equity counterparts in 30 straight months through June, according to the Investment Company Institute, a Washington-based trade group. Preliminary data show the trend continued in July, matching the streak posted by bonds from 1984 through 1987.
Pros are talking about a Bond Bubble while retail investors are piling into bond funds.
Pete 2:43 PM on August 23, 2010 Permalink | Log in to Reply
Another article from Bloomberg:
Bond Funds Gain Cash Like Stocks in Dot-Com Era: Credit Markets
“The amount of money flowing into bond funds is poised to exceed the cash that went into stock funds during the Internet bubble, stoking concern fixed-income markets are headed for a fall.”