Or select individually:
- Here’s The One Type Of Stock Fund Investors Are Still Pouring Money Into
- Think Gold Is Making A Move? Here’s The Metal That’s Really On Fire
- Here’s The Invisible Stock Market Crash Only Gold Hoarders Can See
- The Fed Has Finally Bullied Hedge Funds Into Buying Government Bonds
- Americans Just Added More Money To Emerging Markets Than From 1995 – 2005
It's well known that investors have been yanking money out of equity funds and ETFs and stashing that cash in fixed income.
But there is one type of equity fund still getting inflows: dividend funds.
While everyone is focused on gold's massive surge, the reality is there is another precious metal outperforming the yellow one.
Silver is shooting up too, with its rise at 29% for 2010, according to Bespoke Investment Group. That beats gold's 20% rise for the year thus far.
The price ratio of gold to silver has fallen as a result.
From Bespoke Investment Group.
Dollars, euros, and yen are all just currencies you can price any asset in. Everything is cheap or expensive relative to the currency you hold.
Thus if gold is truly a world currency, then the S&P 500 index of U.S. stocks is dirt cheap when priced in it. For every ounce of gold, you can now buy more than five times the amount of stocks you could have 10 years ago, as shown below.
The tricky question is where this stocks-to-gold ratio will go over the next 10 year.
Now look at what the Fed has done. Hedge funds have been forced to reverse their year-to-date money-losing bet against U.S. government bonds. After watching treasury yields march ever lower this year, they've capitulated.
According to SocGen Cross Asset Research, hedge funds as a group have recently become net-buyers of 10-year U.S. Treasury's.
This marks a key inflection point after at least a year of net-selling.
Also note the timing of this shift. It starts right ahead of when the Federal Reserve announced that quantitative easing was back on the table. Nobody wants to play chicken with Ben Bernanke, and you can't blame them since, as Deutsche Bank says, fresh QE could spark a major government bond rally.
(Via Societe General, SG Hedge Fund Watch, 29 September 2010)
Total assets under management for U.S. emerging markets funds is now pretty close to the peak level it hit pre-crisis and what's striking is how quickly money has come back.
Americans' invested assets in emerging markets funds rose by more than 700% over just five years ($20 billion in 2003 to $170 billion in 2008). It then halved during the crisis, but now it's all come back.
Americans have doubled their investment in emerging markets, just since the crisis, and it's more money added into emerging markets than was added during the 10 years from 1995 - 2005.
Love for developing markets stocks has emerged from the crisis completely unscathed.