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.

chart

Photo: Morgan Stanley

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

chart

Photo: Morgan Stanley

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.