Market Summary – Q4 2010
What’s Been Happening? One of the biggest stories in investing is what we call fund flows. The chart to the right shows the flow of mutual fund money into three asset classes over the last three years – US stocks, US bonds andInternational Emerging Market stocks. The steep upward sloping lines indicate that in 2009 and 2010 the average investor continued to add more money into funds that had done well in 2008 [bonds and emerging market stocks] and reduced exposure to areas that underperformed [US stocks]. As we know, stocks have been much more productive than bonds since March 2009 [S&P...
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