For Your Consideration {05.04.12}

1.)  The Approaching Reallocation Rally

Doug Kass over at  Thestreet.com.  Pertinent statistic:  "The Investment Company Institute reports that March outflows from stock funds totaled $9.62 billion compared to an inflow of $1.38 billion in February. That figure included $2.02 billion of funds committed to non-U.S. equity markets, however, bringing the outflow from domestic equity funds to $11.63 billion in March compared to an outflow of only $1.66 billion in February."

And the salient point:  It remains {Mr. Kass'} contention that it will take relatively large losses in bond funds to bring back the individual investor into equities. But this is likely coming -- it almost always occurs coincident with higher stock prices -- and when it does, one of the greatest reallocations out of bonds and into equities will commence.

2.)  Barry Ritholtz over at The Big Picture {BTW one of my "must" reads every morning} on managing money.  Where Sea Monsters Live:   "Anyone who toils in the markets professionally or manages money for other people (or even their own investments) does not get to enjoy such a lavish, self-indulgent luxury. Their job is not to opine on such matters, but rather, to manage cash in the environment that is — the world that exists presently, and is likely to exist in the near future. It is not their role to manage money based on the way things ought to be — rather than the way things are."