by winston » Sat Nov 14, 2015 6:02 pm
Fed Paranoia: Bond Fund Withdrawals At 5-Month High
By Shuli Ren
The Federal Reserve will raise rates next month!
Investors heard that loud and clear. Over the last week (November 5 to 11), investors withdrew $6.4 billion from global bonds, a five-month high, while parking $9.1 billion into money market funds, data provided by Jefferies show.
Within global bond funds, investors withdrew $3.4 billion from U.S.-related bonds, the heaviest since mid-June.
Emerging markets bonds funds saw $2 billion outflow. Year-to-date, over $19 billion left emerging markets bond funds.
On the equities side, investors continued to prefer developed markets over developing markets, with inflows into Japan, western Europe and the US.
A total of $1.7 billion left emerging markets equities and the withdrawal was broad-based. Investors lost interest in Taiwan again, net selling $1.1 billion.
In November, the iShares Emerging Markets Local Currency Bond ETF (LEMB) fell 1.5%, the iShares JPMorgan USD Emerging Markets ETF (EMB) was little changed, the iShares MSCI Emerging Markets ETF (EEM) dropped 2.5%, and the Vanguard FTSE Emerging Markets ETF (VWO) was down 2%. The PIMCO Total Return Active ETF (BOND) retreated 0.7%.
Source: Barron's Asia
It's all about "how much you made when you were right" & "how little you lost when you were wrong"