Capital Markets Spring 2020

II

Seeking Safety Lending vs. Owning

• Over the past several years, and recently, as a result of the pandemic, investors have been allocating away from equities and into government bonds and cash

I

…And into Cash

Investors Have Plowed Money into Bonds

II

4,500

Stocks

Bonds

1,400

4,000

III

1,200

1,000

3,500

800

3,000 ($ billions)

600

IV

400 ($ billions)

Money Market Funds

2,500

200

Cumulative Fund Flow

0

2,000

V

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Jun-17

Jun-18

Jun-19

Mar-17

Mar-18

Mar-19

Mar-20

Dec-16

Dec-17

Dec-18

Dec-19

Sep-17

Sep-18

Sep-19

VI

Source: Morningstar, Investment Company Institute, Alger. Bond flows include taxable and municipals and stock flows include U.S. equity and international equity—all include passive and ETF flows.

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