2014 …Same All Same All…But Only Faster…

Ok it looks like 2013 finished on a theme of international equity buying and selling of bonds. Or so tell us the latest  data release of the US jmutual fund flow data from the ICI . The usual charts are in the below.

inflow 31122013

Cumulative flows


And yes we still have a lot of stale bond investments to clear out there so on an inventory basis bearing in mind the withdrawal of liquidity that central banks are about to embark on and the effect it will have on bond valuations I will stick to my long view on equities and short bonds. I think the telling factor for 2014 will be the acceleration of the shift in asset allocation ( I ll think of a few charts to visualise this…) ….It may even think about building up further my holdings of financial equities….