Tags: investors | stock | funds | dow | cash | money

Investors Flood US Stock Funds They'd Shunned as Dow Roars

Investors Flood US Stock Funds They'd Shunned as Dow Roars
Woo-Bing-Siew/Dreamstime

Friday, 20 October 2017 09:35 AM

In a strong week for U.S. stock funds, investors added the most money since June as most corporate earnings beat expectations and the S&P 500 continued to extend its record.

They poured $7.5 billion into the securities in the week to Oct. 18, Bank of America Merrill Lynch said in a research report, citing EPFR Global data. It was the largest inflow in 18 weeks.

Japanese equity funds posted outflows of $4.4 billion, the most on record, ahead of Sunday’s general election. Exchange-traded funds were responsible for the bulk of the redemptions, possibly via the Bank of Japan, according to the report. European stock funds attracted $1.1 billion.

The flows mark a reversal from the shift out of the U.S. and into stocks of Europe, Japan and emerging markets. A net $5.3 billion has been taken out of U.S. equity funds since the beginning of the year, while European stocks are sitting on an inflow of $38.9 billion and Japanese equities $29.4 billion.

This week appetite for American stocks returned while funds sought to capitalize on a rally that took the Dow Jones Industrial Average over the 23,000 level for the first time. Third-quarter earnings season has surprised on the upside, with about 80 percent of companies to date reporting profits that beat analysts’ forecasts.

Elsewhere, investment-grade bond funds gained $5.3 billion of new money, the 43rd straight week of inflows. Government bond funds suffered a fifth straight week of redemptions as investors withdrew $1 billion. Gold funds lost $400 million.

© Copyright 2021 Bloomberg News. All rights reserved.


StreetTalk
In a strong week for U.S. stock funds, investors added the most money since June as most corporate earnings beat expectations and the S&P 500 continued to extend its record.
investors, stock, funds, dow, cash, money
251
2017-35-20
Friday, 20 October 2017 09:35 AM
Newsmax Media, Inc.
 
Newsmax TV Live

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