Investing04 Sep 2010 10:49 am
The latest data from Morningstar tells us something interesting. A lot of people are getting out of their domestic Equity funds and putting that released capital into bond funds. This is interesting because equities are really poisted to start taking off, right around the time that interest rates are also poised to start taking off too. The end result is that equities will increase in value thanks to a recovering econmy and bond prices will start to tank thanks to a recovering economy. Although it is not always the case, one can almost always expect bond prices to behave oposite to equity prices. Bond are a bad move right now…