The Most Hated Rally Ever That Everyone Loves

Posted by

A gigantic statistic surfaced this weekend about fund flows this past week, which shattered every weekly record on the books:

Investors in U.S.-based funds poured $36.5 billion into stock funds in the latest weekly period, marking the biggest inflows on record as U.S. stocks surged to record highs, data from Thomson Reuters Lipper service showed on Friday.

The massive cash commitments for the week ended Dec. 24 were the biggest since Lipper’s records began in 1992. Investors pledged entirely to funds that specialize in U.S. stocks, which attracted $39 billion, while funds that invest in non-U.S.shares posted $2.5 billion in outflows.

The demand came from both retail and institutional investors, with stock mutual funds attracting $12.8 billion and stock exchange-traded funds attracting $23.7 billion.

I think it’s safe to say:

a) we can drop the whole “Most hated bull market ever” thing.

b) Wow – stock ETFs took in double what stock mutual funds took in. This is advisors and younger investors putting money to work, not just paint-by-numbers 401(k) contribution.

c) the pure hatred of overseas stocks remains apparent in this data. The degree to which people are willing to chase US stocks while forsaking the stocks from around the world is hitting a fever pitch.

Source:

U.S.-based stock funds attract record $36.5 bln inflows in week -Lipper (Reuters)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
HowIInvestMyMoney