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U.S. Federal Reserve chairman Ben Bernanke.
U.S. Federal Reserve chairman Ben Bernanke.
(JIM BOURG/REUTERS)

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New year points to shift of funds from bonds to stocks

A recent selloff in U.S. bond markets has equity investors hoping that all that “cash on the sidelines” that brokers love to cite is finally headed toward the S&P 500. If so, investors have a right to be excited. A reallocation of assets from bloated bond funds to equity markets would signal the success of the U.S. Federal Reserve’s stimulus strategy; it might also usher in a sustained period of strong returns for stocks.