With the markets performance lately, many so called experts are calling out a "great rotation" from bonds into stocks. The only problem is, a jaded investor always keeps cautious. We have seen some of the greatest moves in the market the last few years but we have a massive stockpile of investor money still in money markets. Here is a great article by Dhara Ranasinghe from CNBC talking about what we can expect from this risk move so many are hoping for.
One key point thats been made is that even though the market has done quite well in the U.S. and confidence is increasing there has been very little improvement to the U.S. economy. The unemployment number is way to high not to mention the real unemployment number with those who no longer appear in the statistics.
Another reason there have been five years of gains for fixed income investments and these have been strong gains. Investors are happy that they're not losing money and are making great returns with minimal risk at the moment.
Money is going in to equities but a lot is coming from the cash world, money markets. There is a lot of money that has not been in play the last few years. The numbers show a minimal amount of money is coming from bond funds and possibly the additions are slowing somewhat. We just do not see a massive shift occurring. Matt emphasizes, "When there is a lot of hype it is usually a good idea to act with extreme caution."
For more information on this topic, or to see how Matt Golab can help, please visit www.aaronmatthewsfinancial.com
About Matt Golab:
Matt is the founder of Aaron Matthews Financial Resources Headquartered in Elk Grove California. The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight. He is often featured in Senior Market Advisor Magazine, a publication which attracts the top financial planners in the country. Matt has been featured in newspapers and websites around the country passing on the principals for a successful retirement. Matt has been featured in Life Health Pro, The Inteligencer, Newsweek, TheSmartRetiree, Burlington County Times and soon will be appearing nationwide on ABC, CBS, Fox, and NBC.
Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt has also been recruited to write a chapter in Tom Hopkins upcoming book, Victory scheduled to be released later this year. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market".