Where did the smart money go in November?

Fund flows were erratic in November as investors were pulled in different directions by the mixed messages emerging from the Federal Reserve. Those who believed incoming chairman Janet Yellen would hold off on the tapering of quantitative easing (QE) returned to emerging markets, while those who remained convinced the end of QE is inevitable steered clear of equities and longer duration bonds altogether. At the start of November, investors exited US equities, possibly as a result of profit-taking, possibly as a result of policy meetings worldwide that threatened to increase economic unce...