...net inflows into taxable bond funds last week totaled $11.28 billion, on top of $8.8 billion the week before. While it is hardly the case that private clients are abandoning the equity market — buying a net $1.22 billion — it is a trickle next to the deliberate asset allocation decision being made in favour of fixed-income securities. Remember, U.S. households have 25% of their assets in stocks; less than 7% in bonds. If Bob Farrell’s rule number one on mean reversion plays out, look for fixed-income securities to remain in a secular bull market for some time to come.
---Rosenberg 10.30
No comments:
Post a Comment