Indeed – investors can be rational. As fear descends, greed ascends . . . “2013 will be a “game changer” as investors reallocate money” – Ray Dalio at Davos

The business press was full of “rotational” comments this weekend.  More people are getting on board with the notion that the huge quantities of cash now flowing into equity mutual funds may be just the beginning of the mother of all reallocations of capital out of bonds and into higher ROI assets – including equities – eh?  The title of this post includes a quote by Ray Dalio at the annual brain fest in Davos (reported by Bloomberg).  Ray is founder of Bridgewater Assoc., an $81 billion hedge fund – when he talks, people listen.  He also said this – “There’s a lot of money in a place that’s getting a very bad return and in this particular year there’s going to be, in my opinion, a shift,” . . . “The complexion of the world will change as that money goes from cash into other things. The landscape will change, particularly later in the year and beyond.”  Barron’s echoed the sentiment with the following subtitle to their “Trader” column . . . “The long-awaited tipping point may have finally arrived, as stocks start looking better than bonds”.  While there may be a market price correction there is ample precedent for the current string of positive weeks of rising stock prices to continue.  Jeb B. Terry, Sr.  Jan 27, 2013

NASDAQ weeks up

Aberdeen Investment Management – a guide service for micro-cap technology investment

Leave a Reply

Your email address will not be published. Required fields are marked *