As I have noted here TLT has double the performance of SPY. So there would be no surprise if there is net inflows to bonds. Performance chasing that has very little to do with investors belief or non-belief in TINA.
Ghost of Igloi wrote:
OK, here is my response.
First, you said: "I assume you know more than you are letting on because it does not support your public position."
For the record this best summarizes my viewpoint: "At current valuation levels, it is hard to see how a traditional stock and bond portfolio will perfom to historical levels, at least over the next ten years."
Read more: http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=285#ixzz3e6hg8MpZ
Also, I have supplied plenty of data and the rationale to support my position. You have provided little to none in the way of data or rationale, but plenty of accusations.
Second, you said "we all know how bonds work. What you left out, though I firmly believe that you are aware of it, is that most bonds are held in funds and not by individuals. These funds rarely hold their bonds to maturity, selling and buying them often to maximize returns for the funds investors. "
My response is that bond mutual fund managers trade bonds for a variety of reasons, and many bonds in bond mutual funds are held to maturity. Bonds can be sold due to overvaluation, bonds can be sold due to unforseen risks and bonds can be sold to fund redemptions. No different than a stock mutual fund manager. One can buy a can buy a bond index fund exchange traded fund just as well as one can buy a stock index exchange traded fund. Both investments are passive.
Third, you said "That is precisely why the bond bubble is troublesome, but you knew that, didn't you."
I gave example using a bond proxy (10 Year Treasury) and a stock proxy (S&P 500 Index) to illustrate a point. There is no selective bias here. I am illustrating a point here using approriate industry benchmarks.
Lastly, you act the injured party when you claim "despite you're predictable attempt to paint me as ignorant."
Yet you responded to my posts with the following: "Anybody with at least half a brain can see the bubble there."
Read more: http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=280#ixzz3e6ieldm4
Or: "Your tunnel vision is why you are so clueless."
Read more: http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=281#ixzz3e6jJioqO
Have a good evening.