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Notes to myself, possibly of interest to others.
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Monday, March 4, 2013

Rosenberg Daily - Bonds still good

[A]ll this talk ofthe ‘Great Rotation' was just that - talk. Yes, equity funds took in $42 billion in January, the sixth largest net inflow on record (weekly data point t0 a further $18 billion net inflow in February). But what is key is that this was not at the expense of bonds or bond proxies, but rather cash on the sidelines being deployed (money market saw net outflows of $10.7 billion in January. as an example). Bonds are not seeing a negative rotation at all - in fact, taxable bond funds actually posted net buying of $25.7 billion which was nearly triple the $10.4 billion recorded in December, while hybrids (income equity that trade like a bond) attracted a record high $9.9 billion last month. The ‘Great Rotation' is a cash story, not a bond story - which was our point all along.

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