In a report from CIBC World markets Benjamin Tal, senior economist, sheds some light on where we are investing our money. The results certainly show two distinct changes; one, we are moving from mutuals to bonds, which reflects our current aversion to risk, and the amount of cash is steadily increasing which even shows a higher level of risk aversion.
August 2007 net sales of Mutual Funds dropped by $1.69 Billion, in the same period net inflows to bonds increased by $800 million.
Money market funds (cash) has risen 35% year over year
Chequing and saving account are up 7% year over year
Conventional wisdom suggests that people will park their money in cash likely for the balance of this year and then in 2008 start moving to equities and commodities.
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