In 2009, mutual funds netted a total of $377 billion, with $357 billion, or 95% of that going to bond funds. Outflows from U.S. stock funds were $25.7 billion.

With earnings off long-term government issues so low, investors are likely to continue to march into high-yield, long bonds, warns Tobias Levkovich, chief U.S. strategist at Citigroup Capital Markets. And that, in essence, could create the same kind of dot-com mania that led to the market crash in 2000.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access