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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 690.270.0%Dec 26 4:00 PM EST

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From: Challo Jeregy7/30/2012 2:54:43 PM
1 Recommendation  Read Replies (1) of 220721
 
Much has been written about how the "equity cult" has been dying.

In short, this is the idea that stocks are falling out of favor as an investment in a diversified portfolio. Citi's Robert Buckland wrote a massive report about this trend in May.

David Rosenberg, the bearish economist and strategist at Gluskin Sheff, sites more evidence that the "equity cult is clearly over."

From his note this morning:

U.S. investors withdrew a net $11.5 billion out of equity funds last week (according to the Lipper data...including ETFs) – the sharpest outflow in two years. Taxable bond funds attracted over $3 billion and that brings the year-todate tally to $151 billion as the secular shift in investor behaviour towards income-generation continues apace. For those who are willing to dip some toes into the equity risk pool and get paid a rent while they await the next bull run, hybrids ("income equity") took in a solid $586 million of fresh inflow last week.

If these trends persist, then returns may be low for years.

businessinsider.com
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