Wednesday, March 30, 2011

Equity & Bond Mutual Funds

 What are individuals doing now? Over the past three months through February, they purchased $72 billion in equity mutual funds and $9.3 billion in bond funds. The equity inflows represent the best three-month total since February 2007. The bond inflows represent the worst three-month total since late 2008, just before individual investors went on a bond-buying binge during 2009 and most of 2010.

What did individual investors do during one of the greatest two-year equity bull markets in history? They bought bonds. Their cumulative net inflows over the past 24 months through February were $737.7 billion into bond funds and $119.5 billion into equity funds. (We update these charts for subscribers to our service in our Mutual Funds briefing book.)

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