Asset Allocation Watch … out of bonds into equities
Over the last days we see increasing interest from investors to sell bonds and buy (back) equities.
Reasons are …
- the huge need of all Governments to finance their attempt to “save the planet”.
- the possible outperformance in future years as either the economy picks up or/and inflation rises.
- most people think, that NOW … after that BAD 2008 and an already 10% fall in prices in 2009 … equities are cheap.
- mainstream thinking is, interest rates and company earnings can’t fall farther.
So be aware … sentiment is changing … bad news is seen again as good news … Be aware!
Tags: asset allocation, outlook
