At the beginning of 2009, institutional and individual investors were sitting on a mountain of cash, pulling money out from everywhere - including equities, commodities and municipal bonds. That’s nearly $9 trillion, according to the Federal Reserve.

But those same investors are starting to unleash a landslide of cash into the markets. According to the April, 2009 Merrill Lynch Survey of Fund Managers, optimism about global economic growth has reached its highest level since 2004, prompting investors to lower their aversion to risk.

The percentage of investors who are overweight in cash in their accounts fell to 28% in April from 41% in March. That’s a significant drop, and it represents a lot of cash being put to work elsewhere.

Those numbers make sense, according to AMG Data. The $3.7 trillion money market fund sector experienced cash outflows of $35.5 billion in February, $51.15 billion in March, $18.7 billion in April and $15.2

Municipal Bonds: Two Muni-Bond Fund Investment Opportunities

by David Fessler, Advisory Panelist

At the beginning of 2009, institutional and individual investors were sitting on a mountain of cash, pulling money out from everywhere - including equities, commodities and municipal bonds. That’s nearly $9 trillion, according to the Federal Reserve.

But those same investors are starting to unleash a landslide of cash into the markets. According to the April, 2009 Merrill Lynch Survey of Fund Managers, optimism about global economic growth has reached its highest level since 2004, prompting investors to lower their aversion to risk.

The percentage of investors who are overweight in cash in their accounts fell to 28% in April from 41% in March. That’s a significant drop, and it represents a lot of cash being put to work elsewhere.

Those numbers make sense, according to AMG Data. The $3.7 trillion money market fund sector experienced cash outflows

Nouriel Roubini, professor at New York University and chairman of RGE Monitor, is renowned for his bearish stance on the US economy and stock markets. Aline van Duyn, US Markets Editor of the Financial Times, has just conducted a three-part video interview with Roubini on a variety of topical issues.

In Part 1 Roubini shares his pessimistic outlook for the US economy. He does not expect a short and shallow recession, but believes it will last 12 to 18 months. He expects the housing recession to get worse; a contraction of consumption; and problems in the financial system well beyond sub-prime mortgages, into residential mortgages, commercial real estate, consumer credit, leveraged loans, corporate bonds and municipal bonds.

Click here or on the image below for Part

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