MARKETS In his most recent market commentary Marc Faber, author of the Gloom, Boom, Doom newsletter, reflected on the popularity of bond funds. “It puzzles me that after a 28-year bull market in long-term US Treasuries, investors are pouring money into bond funds,” he said.
But that’s exactly what investors on both sides of the Atlantic have being doing. Indeed, 2009 is shaping up to be a record year for US bond funds, with net inflows of $280bn (£167bn) already. By contrast, inflows into US and European equity funds remain small and cash balances high.
