Bernstein Says ‘Great Rotation’ of Bonds to Stocks Flawed
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The idea of a “great rotation” from bonds to stocks is flawed and investors expecting that shift to boost equity prices may be disappointed, according to Sanford C. Bernstein & Co.
“A rotation mental model may stem from incomplete notions of supply, demand, pricing and flows in capital markets,” Luke Montgomery, an analyst at the New York-based firm covering asset managers, wrote today in a note to clients.