Earlier this fall fund giant Fidelity announced that the post-crisis migration of spooked investors out of equities and into bonds and cash had pushed fixed income assets to account for more than half of the $1.6 trillion Fidelity manages. What’s happening at Fidelity is symptomatic of a massive national preference for bonds. As Fidelity’s asset allocation research team notes, bond inflows industry wide — funds and ETFs — have outpaced stock inflows 33-1 since the financial crisis began. ($1.1 trillion vs. $33 billion.)
And that’s looking like some pretty crappy timing, according to Fidelity’s AA team. In a recent report: US Equities: Light at the End of the Tunnel, Fidelity makes the case that based on current valuations for stocks and bonds, stocks look like the far better investment. On the plus side for stocks is the fact that the average 12-month PE ratio for the S&P 500 (13.8 when the report was published) is historically below average. Looking at data going back to 1926, the AA team found that when starting from a similar valuation, the S&P 500’s annualized real (inflation-adjusted) return for the next five years was 10%.
Source: Forbes
Related Articles:
- A Roadmap To Build Wealth With Dividend Stocks
- The Good, The Bad and The Ugly of Dividend Stocks
- 12 Blue Chip Dividend Stocks For When the Chips Are Down
- Spanning the World For The Best Dividend Stocks
- My Five Top And Bottom Performing Dividend Stocks
Dividend Growth Stocks News
- 3 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term - Nasdaq - 7/22/2025
- 3 ASX Dividend Stocks To Boost Your Portfolio Income - Yahoo Finance - 7/22/2025
- Asian Dividend Stocks To Consider In July 2025 - Yahoo Finance - 7/21/2025
- Best Dividend Stocks Exclusive Stock Market Club - Lightning-fast capital gains - Autocar Professional - 7/22/2025
- 3 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term - The Motley Fool - 7/22/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
- Abbvie Inc. (ABBV) Dividend Stock Analysis - 6/13/2025
Post Crash, Investors Put $33 in Bonds for Every $1 Into Stocks
Posted by D4L | Wednesday, November 07, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.