JPMorgan: A big rotation from bonds to equities on the cards

Rebalancing can fetch $230-billion inflows into world stocks this month

The worst could be over for the equity markets, at least for March. Global investment bank JPMorgan is projecting a $230-billion bonanza for the global equity markets as large institutional investors, mainly balanced mutual fund and pension funds, rotate out of bonds into equities.
 

Though a large portion of these inflows are estimated to go into American stocks, they may spillover over into other markets.

The main thesis of the JPMorgan study is that the sharp fall in the market, so far, this year has turned the risk-reward favourable for equity investments vis-à-vis bonds. As a result, funds that look to