Wednesday, January 23, 2013

Everything You Wanted To Know About The Great Rotation (But Were Afraid To Ask)





One of the big investment shifts of our day may be at hand - regardless of how global markets actually perform this year.  What's already known as the "The Great Rotation" - a tilting of pension and insurance funds' strategic, long-term asset preference back toward equity from extreme positioning in bonds - has been one of themes of the new year so far.

The gist of the argument is that investor holdings of now expensive, ultra-low yielding government debt - following a virtually unbroken 20-year bull market in bonds - are ripe for rebalancing. The attraction of relative and absolute valuations in equity will coax the outflow to stocks.

It's this juncture that has some of the most persistent global equity bears of the past two decades, such as Societe Generale strategist Albert Edwards, rethinking the big picture…..

Read all about it at http://www.reuters.com/article/2013/01/23/us-investment-rotation-idUSBRE90M07720130123

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