The Riskalyze Report: Advisors Sell Fake Bond Holdings

At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $44 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…


February 23rd – March 1st 2015

Winners (advisor flows TO these investments increased substantially):  
  1. Apple (AAPL)
  2. Aggregate Bond Index (BND, AGG)
  3. Real Estate (VNQ)

Losers (advisor flows FROM these investments increased substantially):

  1. Strategic/tactical Fixed Income (GSZAX, PUBDX, DBLTX)
  2. Telecom  (T and VZ)
  3. Energy (XOM, CVX)

Josh here – energy stocks, which advisors using the Riskalyze platform had bought on the dip, were for sale this week.

But the more interesting thing happening, in my view, is in fixed income. For six years, advisors have been forced to construct income models with loads of different asset classes in order to be able to show clients some decent current yield on their money. There is change afoot in this regard.

With the consensus building toward 2015 being the “lift off” year for Fed Funds rates, we’re steadily seeing the “better than bonds” trade taken off as well. Yesterday I noted that utility stocks were down 6.5% year-to-date and the index was below its 200-day moving average for the first time since August. This week, Riskalyze data indicates that advisors are also selling the similarly yield-oriented telecom stocks AT&T and Verizon.

They also booted some “strategic and tactical” fixed income funds while getting more plain-vanilla on the buy side with BND and AGG (bond index ETFs).

I expect to see more of this “non-traditional” fixed income unwind as we get closer to the expected rate hikes this June. The fixed income proxy trade is suspected guilty until proven innocent.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. 사설토토 commented on Dec 24

    … [Trackback]

    […] Here you can find 56397 additional Information on that Topic: […]

  2. fake rolex commented on Dec 29

    … [Trackback]

    […] Read More Info here on that Topic: […]

  3. cbd for anxiety commented on Jan 02

    … [Trackback]

    […] There you will find 24544 more Information to that Topic: […]

  4. Extra resources commented on Jan 06

    … [Trackback]

    […] Find More here on that Topic: […]

  5. Bosch Cordless planers manuals commented on Jan 18

    … [Trackback]

    […] Read More on that Topic: […]