Back to top

Real Time Insight

Earlier this year, investors showed a lot of enthusiasm for stocks. Global inflows into equity ETFs were up 59.7% in the first two months of this year while inflows into fixed income ETFs were down 79.7%.

But as the year progressed, the so-called “Great Rotation”--from bonds to stocks--appeared to be taking much longer than earlier expected. Though ETF investors showed a clear preference for equity funds, most mutual fund investors continued to put money in bond funds as well. Further, most of the money going into stocks came from the cash lying on the sidelines.

But it appears now that investors are finally ready to dump bonds as there are renewed concerns that the Fed may be getting ready to taper off its bond purchases.

Last month, bond markets saw their fourth worst sell-off in the past twenty years. 10 year treasury yield is now at 2.23%, up sharply from 1.67% at the beginning of May. So retail investors may finally be realizing that the sell-off in bonds could be real.

According to Lipper, investors pulled  out  $4.3 billion from bond mutual funds—third worst outflow on record, and $4.8 billion out of bond ETFs—the largest outflow largest on record, during the week ended June 5, 2013.

Interestingly, this money did not go into equity mutual funds, which saw withdrawal of $769 million while U.S. stock ETFs attracted inflows of just $161 million.

Do you think that this may be the beginning of the end of 30 year bond market bull run or this sell-off is just another ‘false move’ like the one earlier this year?

Zacks Releases Their 7 Best Stocks for September, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new visitors free of charge.

Close This Panel X

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
PANTRY INC PTRY 21.02 +2.09%
INTEL CORP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%