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Tracking Fund Flows

Mutual fund investors are cautious on equities and enthusiastic about bonds.

That’s according to the latest report from TrimTabs Investment Research and its President and CEO Charles Biderman.

In February, equity funds lost more than $5B while bond funds gained about $28B.

Biderman said that “individual investors still love bonds”, with huge amounts leaving money markets and going into bonds. A trend he finds "scary."

Ultimately, Biderman said individual investors are searching for yield and “don’t think that bond funds are risky.” However, he thinks investors aren’t paying enough attention to the fact that “bond prices can go down if interest rates go up.”

Overall, Biderman is seeing investors avoid U.S. stocks and instead “putting money into global equities as a bet against the dollar.”

Liza Tan contributed to this article.

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