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US households have found there is an alternative to stocks
The flow of money in the U.S. into bond and money-market funds accelerated over the last two weeks amid jitters about the banking sector. The surge added to the shift in flows this year from stocks to lower-risk assets that offer more yield, according to Goldman Sachs Research. The rise in yields shows that the era of “there is no alternative” (TINA) to stocks is over, as now “there are reasonable alternatives” (TARA), Goldman Sachs strategists Cormac Conners and David Kostin write in the team’s report. U.S. Treasuries that mature in two years yield about 4%, up from around 2.4% a year ago. “The ... (full story)