Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 23, 2016. REUTERS/Brendan McDermid
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
After a number of false starts since the term was first coined five years ago, the idea of a "Great Rotation" out of bonds into stocks is again gaining traction.In contrast, U.S. stocks have hit record highs.According to Bank of America Merrill Lynch, the week to Nov. 16 saw the biggest equity inflows in two years at $28 billion and the biggest bond outflows in three and a half years at $18 billion – the widest weekly disparity between stock and bond flows ever.U.S. 10-year bond yields rose more than 100 basis points during the so-called taper tantrum of 2013 as investors positioned for a scaling back of U.S. monetary stimulus.JPMorgan notes that over the past week, a record inflow into U.S. equity exchange traded funds (ETFs) was accompanied by a record outflow from bond ETFs.One sign that a great rotation is taking hold is if investors continue to offload bonds on a large scale.Any rotation is likely to be driven by the United States, where bonds have seen some of the steepest selling in years.
FOLLOW THIS ARTICLE