Investors are moving more money than ever before out of stocks and into bonds, widening a valuation gap and convincing JPMorgan Chase and BlackRock that now is the time to buy equities.
About $33 billion flowed out of funds owning U.S. shares this year even as the economic recovery sent free cash flow for American companies excluding banks to 6.8 percent of their market value. That’s the highest level compared with corporate debt yields since 1960, Credit Suisse Group data show. About $185 billion was sent to bond funds through July 31, the most on record, according to the Investment Company Institute.
