Thursday, January 31, 2013

No need to get all hyped up

The great rotation trade out of bonds and into stocks may not be starting just yet.
Even though equity funds have seen net inflows in January, bond funds have benefited from fresh cash infusion as well. Numbers do not lie. Below are detailed breakdowns by ICI (mutual funds) and Lipper (mutual funds and ETFs combined). There were no outflows from bond funds at all. More interesting, it looks like domestic equity ETFs suffered serious setbacks in the middle of the month, which could be seen in Lipper's numbers.
I am afraid my earlier call on reallocation trade may be just a mirage. Only time will show if it actually materializes later this year.

click on tables to enlarge

No comments:

Post a Comment