02.21.22

Exodus From Bond Funds is Mitigating the Stock Market’s Swoon

by: Michael Wursthorn

Investors pulled nearly $160 billion from money market funds and $17.5 billion from bond mutual funds and exchange-traded funds in the first seven weeks of the year, according to Refinitiv Lipper. The exodus is already on pace to be the biggest in at least seven years. Approximately $50 billion was funneled into stock funds over that period, including nearly $21 billion so far this month. The massive reshuffling of assets comes in the midst of a changing economic and monetary landscape. Worries about surging inflation and the Federal Reserve’s plan to begin raising interest rates as soon as next month have put the bond and stock markets under pressure to start the year.

Read the full article on Wall Street Journal