“Great Rotation”— A Wall Street fairy tale?

Since 2008, investors have pulled $410 million from stock market funds, and market-watchers have been waiting for a “great rotation” that would finally bring investors flooding back into the market. In the first four weeks of January, investors put $20.7 billion into stocks, fueling hopes that the rotation had finally arrived. But has it? Some experts merely write off January’s strong run as merely a good few weeks, noting that while corporate profits and earnings are solid, Mom and Pop investors are still wary of equities (with good reason), and the bond market has not contracted alongside growth in equities. Bottom line: it might be another year until we see a rip-roaring equities market worthy of the name.