Wednesday, February 12, 2014

Are Bonds Back?

Along with the erratic nature of the stock market in the early part of 2014, there has been an unsurprising movement of investor money into bond funds. In 2013, bond funds suffered their first net outflows in nine years, with some $177 billion coming out of those funds. But in in the first two weeks of this year, bond funds saw their first net inflows since September of 2013.
 
That could be a bit deceptive, though, because bond funds always do well in January. Last year, the biggest month for bond funds was January, when some $32 billion flowed into them.
 

And equity funds are still doing quite well. After $20 billion flowed into them in 2013 – the first positive year for those funds in eight years- there has been another $8 billion come into them so far in 2014. It looks as if fund investors still believe in this market.

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