×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: stock | fund | inflows | outflows

Experts: Recent Stock Fund Inflows Signify Little

By    |   Thursday, 20 December 2012 02:23 PM EST

While stock funds have seen inflows for three straight weeks through Dec. 12, after suffering outflows for most of the year, that doesn’t mean a raging bull market lurks, experts say.

They say last week’s inflow partly represents a reaction to the Federal Reserve’s decision to increase its quantitative easing, Marketwatch reports.

Some investors also wanted to be in stocks after the Standard & Poor’s 500 jumped 2.7 percent in the three weeks ended Dec. 12.

Editor's Note:
 
'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

But most of the fresh money is going into exchange-traded funds (ETFs). And it’s mostly institutional investors who use ETFs.

Stock mutual funds, which are mostly the province of individual investors, continue to suffer outflows. That’s because Joe six-pack investor remains enamored with bonds.

“There is a lot of upward potential for equities given the money that is sitting in bonds,” Brad Durham, managing director for fund research firm EPFR Global, tells Marketwatch. “But retail is still not totally committed to this market.”

Morningstar research shows stock mutual fund outflows are on pace to break the $96 billion record of 2008.

Some retail investors may be taking profits on their stock mutual funds in fear that capital gains taxes will rise next year, Matthew Lemieux, an analyst for mutual fund research service Lipper, tells Reuters.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
While stock funds have seen inflows for three straight weeks through Dec. 12, after suffering outflows for most of the year, that doesn’t mean a raging bull market lurks, experts say.
stock,fund,inflows,outflows
237
2012-23-20
Thursday, 20 December 2012 02:23 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved