The Great Unrotation? Bonds Top Stocks

That should make stocks a better bet than bonds, since a stronger economy usually translates to corporate profit growth and higher stock prices. But some bond ETFs have surged this year to their highest levels since May, when the Fed first announced plans to "taper" its bond purchases, notes David Lutz, head ETF trader at Stifel Nicolaus. Lutz recently dubbed it the "Great Unrotation," a reference to the Great Rotation of money out of bonds and into stocks that many investors have predicted will take place in earnest this year. Bernanke's perilous 8-year journey One of the top performing bond ETFs this year is designed to mimic the municipal bond market. Investors also seem to like high-quality corporate debt. ETFs that track high-yield corporate bonds (PHB ( PHB )), or junk bonds, have also gained. Full story: