(29 Jan 2013, AFR, p1, Jonathan Shapiro New York)
‘Investors may have reached a turning point in global financial markets, as billions of dollars that have been locked up in safe government bonds for years start flowing back into riskier assets such as shares.
For the seventh straight week, equity funds in the US are luring more money than bond funds with $US5.65 billion flowing into stocks and $US3.7 billion out of bonds, according to global fund flow tracker EPFR’s latest data. In contrast, $US800 billion of funds have poured into bonds and $US600 billion out of stocks during the past seven years. In the wake of the global financial crisis investors sought the sanctuary of bond funds as equities were seen as too risky, but now signs of a reversal are emerging.’