Think Equities Have Gotten Too Unpopular? Households Could Be Dumping Stocks For Years

As we’ve been noting for a while, and as Morgan Stanley highlighted today, the pace at which investors are leaving equity funds in favour of fixed income, has reached a fever pitch.

So have we reached some kind of peak in all this “death of equities” stuff? Has sentiment gotten too extreme?

Maybe not.

In Japan, the allergy to stocks has been a multi-decade phenomenon.

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Photo: Morgan Stanley

Meanwhile, here’s an equivalent measure for the US. Note that we’re still above 40%.

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Photo: Morgan Stanley

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