Investing
Stock Market Thrill Ride Is Breaking Bonds’ Grip on Mom and Pop
- Equity inflows spark talk about big shift in asset allocation
- Risk tolerance seen playing a key role in investor decisions
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Besides enriching Reddit traders and making the stock market front-page news again, the world’s cultural obsession with risk-on assets is doing something that has almost never happened in the past three decades. Turning bonds into an also-ran.
That’s true at least in the eyes of retail investors who have traditionally been staunch devotees to fixed income. Yet one of the starkest displays of changing tastes came last month, when investors poured about $20 billion more into equity funds than they did bonds, data compiled by Bloomberg and the Investment Company Institute show. The inflow gap is the best for equities since 2016.