(2-20-13) For the last year or so, we've see that the Stock Shills on CNBC and Bloomberg have also doubled as the Bond Bears. Why? Because if you are a Retail Stock Tout in financial media, you have a vested interest in pooh-poohing the Bonds at every opportunity.
The line that they have tried to sell is that money is coming out of US Treasury Bond funds and Bond Fund ETFs and supposedly the Smart Joes are adroitly using that money to buy up stocks.
The problem is that the statistics do not point that out. However it's an easy sell since yields are so low in Bond funds or anything related to Bond funds, namely around 2%.
In other words, your paper gave you a 2% coupon, when considered over the last five years, while the S&P has rallied by 83%. So don't worry about it, they say, because it will continue to rally endlessly.
US Treasury Bonds have long been a domain of the older crowd that isn't looking for risk. They're just looking for yield. Statistics every month show that in fact inflows into equity funds continue to drop, whilst inflows into US Treasury funds, although not as robust as they had been 12 months ago, continue to build.