Where did the smart money go in March?

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If January and February saw a ‘great rotation', March saw something akin to a great stagnation, writes Cherry Reynard.

As the Cyprus crisis reminded investors that the eurozone’s problems were far from over, inflows into equities lost momentum throughout March. But there was recognition that fixed income did not look attractive either, with only select parts of the market targeted by investors. The month started cheerfully enough, with global investors placing $7.1bn in equity funds in the first week and the Dow Jones hitting new highs. US equities were particularly in vogue, according to EPFR, collecting $4.95bn of the overall total. But as the Cyprus crisis hit towards the middle of March, investors...