Hendren Group looks at the changes within the market as investors move from the safety of cash reserves into equities and bonds.
Hendren Group is a financial management and investment company dealing with investment methods and strategies. Based in Tokyo boasting a large base of private clients and a well skilled team of advisors, they conduct research and then subsequently develop short and long-term systematic approaches to achieving optimum returns on investments for themselves, their associates and for their current client base.
Hendren Group analyst’s compiled data shows that investors switched billions of dollars out of the safety of cash into both equity and bonds funds within the first half of the year, with a large proportion in high-yielding fixed income, on the back of an improvement in sentiment encouraged by rising hopes of an economic recovery.
This year investors withdrew over $247 million from international money markets and injected approximately $213 million into mixed portfolios containing equity and bonds in the bid to seek better returns through a riskier strategy, whilst globally this year in a study-compiled results showing $250 billion has been pumped in bonds and $220 billion into equities.
“The data does not lie, there has been a large increase this year into bonds and equities excluding last month which lay way to an opposite flow, an anomaly created by the Federal Reserve’s announcements to taper stimulus, investors are looking to generate higher returns and the money markets cannot fulfill their current thirst for gains.
“With near zero interest rates and the prospect that rates are staying low, this has prompted investors into switching into equity and higher yielding bonds,” said David Holmes, Senior Vice President of Mergers and Acquisitions at the Hendren Group.
Hendren Group is set to continue to advise clients to acquire shares within carefully selected equities adding to successful diversified portfolios.