Watching Money Flow Into Bonds

Why did everyone get this wrong last year?

There is so much cash out there.

People were nervous about the economic recovery in the first quarter of the year, whether it was the weather or whatever people wanted to attribute the slowing of the economy to.

There were signs we were not seeing the recovery people were expecting so people went to safe haven trades.

You have central banks around the world continuing to stimulate the economy.

What this meant for investors is they have funneled more cash into the classic total return bond funds than since the first quarter of 2013. they are coming back and saying we are buying into the yield -- story that yields will stay low for a long time.

Is a still the case after the thursday job numbers that we had more additions?

James fuller says he thinks it could be the first quarter of next year and beyond.

He is forecasting a rate increase out in 2016. it is pulling forward a bit.

On the flipside, you have the international monetary fund saying they might reduce their global growth forecast.

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Watching Money Flow Into Bonds