Reply #4: It's not that there's necessarily more money to be made in equities

[customerserviceguy]

but with interest rates have only one possible direction to go, bond funds are going to take awful losses in the next several years. Clearly, the smart rats know when to leave the sinking ship, and I got my money into short-term money market funds months ago. I wouldn't be terribly surprised if that is where a lot of the flight is going to, as MMF's will benefit from the coming increase in rates.

As for muni bonds, the rising rates don't impact already issued securities, in fact, the governments that issued them will be OK, they won't even have to go through the hassle of calling bonds, like they do when interest rates are dropping. But the rise in rates will affect the cost of future borrowing, and will put a crimp on the part of the economy that is powered by government spending.