Friday, September 10, 2010

A theory as to why bonds are down

I have a theory as to why the bond market is down so much this month. Historical seasonality tends to favor weaker stocks, stronger bonds. Tuition bills are one reason that so much liquidation goes on this time of year. Many small investors save to pay those college bills.

The theory is that now that small timers have piled so much money into bonds, and bond funds, the outflows are coming from there.

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