Up until this month, analysts at Morningstar have noticed a divergence between individual investors, who have been gung ho for bonds, and money managers, who have mostly been bullish on equities—and bearish on bonds.
In the aftermath of the financial crisis, asset managers have been busy rolling out new alternative products specifically designed for non-accredited investors. According to Morningstar data, there were 29 distinct alternative strategy mutual...
While bonds may not tank tomorrow, it does seem likely that stock markets will eventually recover at least some of their old gusto. To prepare for the day when the pendulum swings, consider buying fund categories that are suffering outflows.