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Here's A Big Signal That More Investors Are Putting Cash To Work

TedTed
in Fund Discussions
FYI: Despite the perceived political chaos in Washington, markets just got a major sign that investors are taking more and more cash off the sidelines.
Long-only equity mutual funds saw their first weekly inflows since March of last year, according to EPFR Global data. In a note released Friday, Bank of America Merrill Lynch’s Chief Investment Strategist Michael Hartnett wrote that this is “a sign of rising investor confidence and broadening participation” in the equity rally. This follows sustained outflows as investors worried about geopolitical uncertainty, an earnings recession and the prospect of tightening monetary policy across the globe.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-02-17/here-s-a-big-signal-that-more-investors-are-putting-cash-to-work

Comments

  • VintageFreakVintageFreak
    Guys, I have a serious question. I have never understood this EVER. Like for instance "cash on the sidelines". Granted if Fed prints money there is more money. However, for every person who buys a share, someone has to sell it. Unless every day significant number of companies are going public and / or significant more shares are coming into market place due to new issuance or stock splits, how the heck is more cash being put to work?

    If I purchase $100 worth of shares, someone else sold me $100 worth of shares. Cash and Shares exchanged hands.

    Please do explain.
  • Old_JoeOld_Joe
    Well, see, if you had been keeping your $100 in something other than shares, it wasn't working. Whereas that other guy with the $100 in shares, now his $100 was working. If he sold them to you, now your $100 was working, but his wasn't. Unless of course he right away bought $100 worth of some other kind of shares. In that case then everybody's $100 is working.

    This stuff isn't really that hard if you just take a good look at it.
  • VintageFreakVintageFreak
    @Old_Joe, just tell me what you are drinking/smoking with the $100 you got from the original seller of the shares, and we'll call it even:-D
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