US Investors Liquidated $80 Billion in Bonds Last Month

Investors bolted out of bonds last month, yanking a record $80 billion from bond mutual funds and exchange traded funds, according to TrimTabs.
Those who fled were spooked by Federal Reserve chairman Ben Bernanke’s recent announcement that the central bank could start pulling back on its bond purchase program later this year.

While fears that the bond market will collapse when the Fed begins reversing its stimulus programs are overblown, Oliver Pursche, president of Suffern, N.Y.-based investment advisory firm Gary Goldberg Financial Services, says bonds are still “very overvalued.”
In fact, many of his firm’s clients have light exposure to bonds.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza