Over the last four years, cumulative mutual fund flows have shown that investors favour bonds over equities in general. This pattern is quite worrying because bonds have been in a bull market for almost 30 years now, since 1981. Foreign equities including emerging markets are also receiving strong flows, despite an amazingly powerful rally since 2001. On the other hand, the most ignored asset class seems to be the US equity market. Once again this pattern is quite worrying, because S&P 500 has been out of favour and in a secular bear market for over 11 years.
These opinions are obviously my own and are by no means to be used to time todays market over the next few months, but as the old saying goes: "Investors never chase bears". It is my opinion that bonds are nearing the end of their secular bull trend and in the next few years stock could be at bargain prices. But investors seem to be doing a completely opposite strategy.