The ups and downs of the stock markets in recent years have kept a lot of people from putting their money into equities. But there's still plenty of money to be invested. Where has it been going? The answer is pretty clear: the bond market.
The amount of money put into bond funds exceeded that put into stock funds in June. This was the 30th consecutive month in which bond funds garnered more assets than stock funds. The last month in which equity funds took in more money than bond funds was December 2007 - a month after the recession started.
On the other hand, bond funds still have a ways to go before they catch up with stock funds. There is now $2 trillion held in taxable bond funds and $489 billion in municipal bond funds. But there is still $4.6 trillion invested in stock mutual funds - almost twice as much as in bond funds.
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