Bonds Crashing - "Best of Both Worlds for Equities"
#1 Economy growing but not too fast to take off Quantative Easing or raise rates.
Economy Not Improving Enough to End QE2 - CNBC
The $600 billion stimulus, dubbed QE2, is a government-backed initiative designed to push down the cost of short-term borrowing.
#2 Bond bubble started bursting at the seams in Nov. and has kept on bursting ever since. The Massive money in Bonds is flowing outward and into Equities.
Investors are racing faster for the exits from bond funds.
Bond funds hemorrhaged $20.37 billion in December outflow as municipal bond fund outflow doubled from November, according to the Investment Company Institute.
All bond fund outflow soared from November's $849 million outflow.