The Financial Times points out that lots of cash piled into government debt last year in a quest for safety.
In 2009, investors bought almost $250bn of dollar-denominated bonds sold by US and European banks, all with triple A guarantees from US and European governments.
Now, as the government-guaranteed bonds sold during the crisis start to mature and get repaid, investors are wondering where to reinvest the cash they receive.
As it matures, no doubt much of it will be reinvested in the bond market. But some of it, given the strong performance of global equity markets, might leak into stocks. Given that the size of the debt markets are many times the size of world stock markets, even a little flow could create a nice situation in stocks.
