It’s no news that investors are pulling funds out of equities and into safer investments but if anyone needed any convincing of that, a story appearing on* today made the point crystal clear. According to the article, Treasury bond ETFs four of the top five spots of all available ETFs for the entire month of January. Not just one or two days, but the entire month. Only twice in the history of ETF trading has this occurred and only at times, not the entire 30 day period and that was back in 2003 and last September. Real estate ETFs also had a big month, taking in $807 million according to the article.

We’ve seen trillions in wealth wiped out in exchanges all around the world and while the Dow had a strong week last week it didn’t make up nearly enough to reach the 18000 peak we saw last summer and fall. Triple digit fluctuations are the theme for the day and that trend is continuing. Consumer spending came in a bit tepid last month and construction spending barely moved. This is hardly a predictor of any type of recession but does point to the fact that investors are taking more protective positions, including real estate.

As more funds leave equities investors can park those funds or put them to use and even though bond yields are very, very low it’s much better than taking a loss. Real estate investors and private equity however are doing very well, much better than a paltry 2.00% yield on the 10-year Treasury. Home values are still on the march upward and financing costs are still very near record lows allowing investors to secure their funds in solid, physical assets that provide a regular monthly cash flow. Will this ETF inflow trend continue? We have another month to find out but so far there’s little to indicate this move will reverse course anytime soon.

* 02/01/2016