One of the strongest trends in investing over the past few months has been the outflow of assets from bond funds. Over the three months that made up the third quarter, investors pulled a whopping $61.5 billion from bond funds. That's a record for any quarter since this record started being kept back in 2004.
U.S bond funds alone accounted for $41 billion of the total withdrawals for the quarter. Another $17.4 billion came out of emerging-market debt funds. TIPS funds - those that invest in Treasury Inflation-Protected Securities - have seen outflows for 25 straight weeks now.
Where is all that money going? The biggest beneficiary was stock funds, which took in $73 billion in the third quarter, according to EPFR Global. Another strong performer was funds invested in bank loans; they took in $21 billion in new assets.
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