And unlike stocks, bond investors don’t have any need to “catch up.” If anything, mutual fund investors would seem to have come into 2009 over weighted in bonds. Not only did mutual fund investors redeem $233 billion in equity funds in 2008, those same funds plunged in market value d...
This shows that bank financing has historically opened up household savings and capital markets, and its allocation ratio for bonds can reach as high as 50-60%, much higher than that of deposits under the mode of 10%. And its allocation to the stock market is completely unblocked. It can ...