A combination of positive economic reports and concern over Ukraine and China is pushing investors out of US equities and into bonds

A combination of positive economic reports and concern over Ukraine and China is pushing investors out of US equities and into bonds. So far today, the S&P 500 is down over a 1% while the 10-year Treasury yield has dropped 2.5%. Investors are snatching up bonds (and gold to some extent) with fears over emerging markets driving the headlines. China continues to be a serious concern for the global economy (see copper and iron ore prices for example). Not to mention, we're bound to see a spike in volatility if Russia decides to annex Crimea. Meanwhile, the US economy is chugging along with jobless claims dropping to the lowest level since November. What's more, retail sales climbed 0.3% last month. It may not seem like much, but it marks the first monthly gain since November. Looks like the risk-off trade is back on.