According to BofA research, almost $24 billion of inflows went into bond funds for the seven day period ending 2-12-20. This represents the most net inflows since 2001 and has traders scratching their heads. Taken a step further, 30 year US government paper booked its lowest yield ever of 2.061%. There is now quiet talk of a huge bubble in the bond market as record assets flow into the lowest yields of our time. As for stocks, the bull keeps charging, even with a relatively small by comparison inflow into stock funds of just $8 billion in all of 2019. Imagine if that bond flow became stock flow? Grab your chair when the music stops.
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