So what have the retail investors been up to? Buying stocks! But, even with yields down low and no-where to go, they are yet to break the bond buying habit.
The market mood was sharply brighter on Friday after the May payrolls failed to produce any fresh shocks. But there was more evidence of the damage already done to investor confidence.
The latest data from fund flow specialists EPFR suggest $12.5bn was pulled from bond funds globally last week — the highest dollar value of net redemptions in the 12-year history of the data series. The sell-off seems to have been across the board, but particularly aggressive amongst high yield and emerging market paper. Read more
It’s a big theme: investors of all colours have reportedly been pouring money into equity funds of late. In fact, over the past week money has been flowing into stocks at the fastest rate since September 2007, according to EPFR.
Which should give all investors pause for thought. Read more
We were just wondering about what might have scared investors off equities this year.
And so it is that TrimTabs, a US investment research firm, offers us at least a partial explanation on Tuesday. Read more
In spite of the considerable efforts of enthusiastic emerging markets equity and bond sales teams, investors are nibbling, not biting, reports the FT in the first of a series. The Institute for International Finance, the bankers’ club, estimates that this year will see private capital inflows into emerging economies of $708bn, down from an earlier forecast of $722bn. This is up from $531bn last year but well short of the pre-crisis record of $1,277bn seen in 2007.