By withdrawing cash from U.S. equity funds for the third year running, "investors are shunning...

|By:, SA News Editor

By withdrawing cash from U.S. equity funds for the third year running, "investors are shunning attractively priced stocks in favor of bonds on which the returns are anemic", says Roger Lowenstein. The S&P 500's earnings yield of 8.5% (a forward P/E of 12) far exceeds the 2.58% yield on Treasurys, but "most of the people buying bond funds do not use a calculator."