Its allocation for American equities dropped by seven percentage points, to 45% of its equity holdings, while its German share portfolio increased by six percentage points, to 11%.
In Brazil, the real fell 2% against the dollar and Brazilian equities dropped 1.6% to 42,646.19, the lowest since 16 March 2007, as investors worried the country will fall deeper into recession.
The bond market exploded as investors fled from equities, dropping Treasury yields.
Bond prices moved higher as money flowed out of equities, dropping the yield on the 10-year note to 3.65% from 3.69% earlier in the day.
Crude oil sold off along with equities, dropping over $2 to around $64 a barrel and dragging the energy sector along with it.
Bond prices were higher; investors stayed away from equities, dropping the yield on the 10-year Treasury note to 4.03% from 4.11%.
The composite SOIR for all equities dropped following the expiration of January options, but continues to linger near its annual highs, pointing to high levels of skepticism on the Street as traders cling to the belief that the broad market has run out of steam.
One basic reason for this disproportion is that the wealth of the middle class is mostly in housing, and the median amount of home equity dropped to $75,000 in 2010 from $110,000 in 2007.
As I wrote in my article about the new data, the middle class puts wealth in housing, and the median amount of home equity dropped to $75,000 in 2010 from $110,000 in 2007.
Equity drops every Friday at 6 00 a.m.
