In the News
4 reasons why the smart money has it wrong this time
September 9, 2014
MarketWatch.com – Conventional wisdom holds that bond investors are the “smart money” in the market, due to heavy institutional participation and their long-term, forward-looking investments. They are viewed as disciplined, unsentimental and focused on the numbers.
Equity investors, on the other hand, are generally thought to be irrational and less sophisticated. They are traders, eager to ride a trend, and often cater to retail rather than institutional clients. The equity market bubbles up and crashes, while the bond markets move more deliberately. Or so goes the story.