Ok the latest ICI data release is out again , so here are my favourite charts. An yet again no surprise it is buy international and domestic equities and sell bonds.
Now it has been 12 months that US investors are buying equities and 6 months that they are selling bonds (and my contention is that we have the same phenomenon in the UK) . What do you need more as a signal ? The great rotation is just starting, so there is still time to come on board….
What really fascinate me is the amount of investment in bonds remaining to be culled by the private investors…even if you think within a balanced portfolio framework we should have a 60% bonds /40 % equity as a point of reference for a neutral the asset allocation… the chart below tells me that we are quite far from this level…..so buy equities… as long it is not PIMCO because their revenues are likely to be dented significantly unless they can re-invent themselves as a global equity manager…..
