Thursday, September 12, 2013

The Great Rotation? (excerpt)

Over the past 13 weeks through the week of August 28, the Investment Company Institute estimates that bond funds had net cash outflows totaling $438 billion at an annual rate. Over the same period, equity funds had net cash inflows of $92 billion at an annual rate. I wouldn’t describe that as a “Great Rotation” just yet, but it could be the start of a big swing by retail investors into equities.

Monthly data show that equity funds plus equity ETFs had cumulative net inflows of $230 billion over the past 12 months through July, the best pace since December 2007. Over this period, equity ETF net inflows were a record $168 billion.

Today's Morning Briefing: Complacency. (1) Biblical warning. (2) Beware of bullish perma-bears. (3) Is doomsaying out of fashion? (4) Fewer recession scares. (5) The beginning of a Great Rotation? (6) The bears are mostly in the correction camp. (7) China’s hard landing postponed again. (8) Government-engineered liquidity squeeze scared Chinese officials more than lenders. (9) The Great Leap Backwards. (More for subscribers.)

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