Here's Why The Big Move From Bonds Into Stocks Is Just Getting Started


Photo: Credit Suisse

In recent weeks we’ve obviously seen the wheels come totally off the bond run, while investor enthusiasm for equities has held up nicely.Will this continue?

There are some worrying signs, most notably that everyone seems to be bullish right now.

But as Credit Suisse argues in its 2011 outlook, the rotation still has a long way to go.

Since 2009, bond funds have received MUCH more investor cash.

The reversal has just barely started

Inflows into equity funds are finally starting to pick up

Inflows into equity funds beat bond funds for the first time since May '09

But most funds are still pretty light on actual equities

And householders are still historically under-invested in equities

And pension fund equity holdings are at an all-time low

Same with property & casualty companies

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