Investors rush into bonds in record numbers…. Alan Greenspan to investors: ‘Run for cover’

Investors rush into bonds in record numbers as global economic outlook falls to worst in 10 years

  • “This month’s survey [found] the biggest ever one-month rotation into the asset class” of bonds, Bank of America Merrill Lynch says.
  • The monthly report is one of the most widely followed surveys of investors on Wall Street.
  • Investors cited a trade war as the biggest concern for the seventh consecutive month.

Investors are fleeing stocks and buying bonds in record numbers amid the global sell-off in equities, according to a December survey of fund managers released on Tuesday.

“Investors are approaching extreme bearishness. … This month’s survey [found] the biggest ever one-month rotation into the asset class” of bonds, Bank of America Merrill Lynch said in the survey. The research report is one of the most widely followed surveys of investors on Wall Street.

 

Alan Greenspan to investors: ‘Run for cover’

 

Washington (CNN Business)Alan Greenspan says the party’s over on Wall Street.

The former Federal Reserve chairman who famously warned more than two decades ago about “irrational exuberance” in the stock market doesn’t see equity prices going any higher than they are now.
“It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said in an interview with CNN anchor Julia Chatterley.
He added that markets could still go up further — but warned investors that the correction would be painful: “At the end of that run, run for cover.”

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