Where did the smart money go in July?

Federal Reserve chairman Ben Bernanke may have sought to reassure bond markets he had no immediate plans to draw quantitative easing (QE) to an end, but investors remained unconvinced. Money continued to flow from bond funds. Equity funds were the key beneficiary despite many investors believing that valuations, certainly in some of the major developed markets such as the US, have started to look stretched. EPFR Global data shows $19.7bn was invested in global equity funds in the second week of July, the highest amount for six months. However, flows out of bond funds had slowed toward...