“Naturally, after this year’s 9% pullback in bonds, we’re going to see some air flow out of the bond bubble. That is, folks that were looking for safety in bonds were burned and are now looking for safety in other places – cash, equities, you name it. Remember back in 2008 we saw the same thing — the safety trade had everyone running to bonds. CEOs for Wells Fargo and Goldman Sachs have both recently gone on record saying interest rates should, or need to, eventually rise. The market needs to ‘normalize’ they say. That said, plan on seeing a lot more money heading in to cash, equities or other investment classes.”
