Sidelined Investors ‘Shovel’ $965-M into Stock Funds on Market Rally

Sidelined Investors ‘Shovel’  $965-M into Stock Funds on Market Rally


FLASH: Sidelined investors join this Bull market rally, as retail stocks outperform following earnings reports from Lowe’s ($LOW), Best Buy ($BBY), and TJX ($TJX)

Investors came back into US stock funds during the week ended 20 February.

It has been the best start to a year for the S&P 500 since Y 1987, breaking a 5-week streak in which investors pulled money out of the rising market, according to data released Wednesday by the Investment Company Institute.

Overall, mutual funds and ETFs that focus on US stocks netted approximately $965-M last week, the 1st positive inflow for the category since the $6.6-B in positive inflows during the week ended 9 January, ICI data showed.

Investors pulled a net of $22.5-B out of domestic stock funds between mid-January and late February, and hot money went short.

The benchmark S&P 500 is up approximately 11.4% YTD, thanks in part to signs that the Fed is slowing its pace of interest rate hikes and a move by Congress to avoid another government shutdown.

The Russell 2000 index of small and mid-cap companies is up 17.2% over the same frame.

The move into domestic stocks came at the expense of world stock funds, which with a decline of $1.17-B suffered their 1st outflows since the week that ended 2 January.

Investors have sent approximately net $13.2-B into world stock mutual funds and ETFs since the start of the year.

An MSCI index of world stocks excluding the US market is up nearly 10% YTD.

Bonds funds and ETFs continued their 7-week stretch of positive inflows.

Taxable bond funds netted approximately $6.1-B during the week, while municipal bond funds netted $2.4-B.

Wednesday, the US major stock market indexes finished at: DJIA -72.82 at 25985.16, NAS Comp +5.21 at 7554.54, S&P 500 -1.52 at 2792.34

Volume: Trade on the NYSE came in at 832-M/shares exchanged

  • Russell 2000 +17.2% YTD
  • NAS Comp +13.9% YTD
  • DJIA +11.4% YTD
  • S&P 500 +11.4% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish.

Stay tuned…

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