From the print edition of TWSJ 12/24/09.
"Long-term mutual funds had net inflows for the 40th week on continued strength for bond funds, according to figures released on Wednesday by the Investment Company Institute.
Total estimated inflows were $11.33 billion in the week ended Dec. 16, putting the total during the streak at about $400 billion. The influx began as equity markets were approaching their bottom in early March.
Stock funds had inflows of $289 million, compared with outflows of $546 million a week earlier. U.S. equities saw outflows of $1.17 billion in the latest week, while foreign funds added $1.46 million.
At the same time, bond funds took in $10.01 billion, up from $4.15 billion the previous week. Bond funds have been seeing heightened inflows as investors look to preserve 2009 gains from other asset classes while eschewing zero-yielding money market funds. Cash has been leaving money-market funds as investors seek higher returns - yields for the funds have been close to zero for months."
I'm staying right where I am in the stock market. The first time some one yells fire the bond investors will head for the door and many will get crushed in the jam up. Nope, I'll just take the trade less traveled and let them come to me - and I know they will come. Just like most were on the wrong trade for the dollar - now it's the bond trade. And this too shall pass.
