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U.S. stock mutual funds gain 7.5 bln - most since 2001
from Goldman -- some perspective on this equity inflow: • it is the largest inflow (ex ETF) we have seen in over 11 years (May 2001) • it is the 18th largest inflow (ex ETF) in AMG history, highlight that 11 out of the 17 larger inflows occurred in the year 2000 alone • it is the first inflow > $1 billion since Apr 2012, first inflow > $2 billion since April 2011, first inflow > $5 billion since Apr 2003
Howdy fundalarm, Well, perhaps the retail investor is coming back into the equity markets and will let this area run for another 6 months or one year. Is this the long noted contrarian move by retail investors? No answers from this house. With just about all equity areas, U.S. & Int'l. attempting a new 52 wk high; perhaps this is a real rally about something. Take care, Catch
interestingly, many flows are from professional money managers... decreased tail risks due to stabilizing in Europe, no hard landing in China and fiscal 'hill' (as opposed to 'cliff') in the US drive risk premia lower. the world economic news have been benign if not outright positive since the fall. the only issue is that the 1Q13 earnings are slowing, but the rest of the year looks decent (at least from the standpoint of WS economic consensus.) many further observe that US stocks look a bit pricey... Europe is a touch better, China is still cheap...
Comments
• it is the largest inflow (ex ETF) we have seen in over 11 years (May 2001)
• it is the 18th largest inflow (ex ETF) in AMG history, highlight that 11 out of the 17 larger inflows occurred in the year 2000 alone
• it is the first inflow > $1 billion since Apr 2012, first inflow > $2 billion since April 2011, first inflow > $5 billion since Apr 2003
Well, perhaps the retail investor is coming back into the equity markets and will let this area run for another 6 months or one year.
Is this the long noted contrarian move by retail investors?
No answers from this house.
With just about all equity areas, U.S. & Int'l. attempting a new 52 wk high; perhaps this is a real rally about something.
Take care,
Catch
The retail investor is once again doing what he or she does best, it looks like: buying HIGH, late to the party. Eh?