Since late May, when interest rates started spiking, there have been more than $78 billion of net redemptions from bond mutual funds. Nobody seems convinced about what to do with the money withdrawn.
Only about $11.7 billion of new net money has flowed into equity mutual funds. That means the bulk of the money taken out still sits in money markets and demand deposits.
New all-time records in the broad averages have not yet brought ‘mom and pop’ back into stocks.
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There is still plenty of room for the rotation of fixed income money into shares.
The bull market in stocks will not end until there are good alternatives.