What a difference a year makes.
This time last year, traders were talking about a "great rotation" from bonds into equities. For a few short weeks in January, it all seemed to be going to plan, with stellar stock gains starting in earnest. However, it now appears this January was all about a rotation of the rotation with stocks in retreat and record outflows from equity fund investors.
U.S.-based exchange-traded fund (ETF) investors withdrew a net $22.3 billion from their accounts in the week ending February 5, according to data from research tracker Lipper on Thursday.
(Read More: Emerging market fund outflows surpass whole of 2013)
This was the their highest weekly net outflows on record, it said, surpassing the $19.5 billion of outflows for the week ended June 25, 2008. Investors also dropped the SPDR S&P 500 ETF "like a hot potato", according to Lipper, with net outflows of $7.6 billion and shunned the iShares MSCI Emerging Markets with net outflows of $2.5 billion.
Similar research from the equity analysis arm of Citibank shows that there was a $24 billion outflow from U.S. equity funds in the same week. Consequently, there was a $13 billion inflow into U.S. bond funds, it said, with both these figures representing record highs in both cases.