There is currently a flight from bonds but not from money

Since 2009, OECD countries have conducted a highly expansionary monetary policy, which has led to a surge in the (central bank) money supply a nd to very low long-term interest rates. This has resulted in rising share prices and real estate prices since 2013; and a rising gold price since 2018. This could be a case of two phenomen a : A flight from bonds: very low bond returns may have led investors to rotate into other asset classes; A flight from money: the excess money supply may have led investors to rotate into real assets to hedge against inflation. But we are also seeing rapid growth in non-bank economic agents’ money holdings : so there is a flight from bonds but no t from money. The flight from bonds and resulting rotation into other asset classes can be expected to gather momentum due to the shift to a long period of negative returns on bond portfolios.