Investors Went All-In On Stocks All Around The World This Week

This week, there was a massive push into global equity funds — to the tune of $US21.4 billion, according to the latest data from EPFR Global.

$6.0 billion of the inflows went into long-only funds — the biggest week for the asset class in 9 months.

“Fed goes AWOL…investors go All-In. Big, frothy inflows to stocks,” writes BofA chief investment strategist Michael Hartnett writes in a note to clients. “Since June, $US83 billion into equity funds versus $US80 billion out of bond funds (Chart 2); investors beginning to worry about a repeat of Q4 1999, when the Fed left the liquidity gates wide open because of ‘Y2K’ fears with tech bubble outcome.”

U.S. equity funds expanded assets under management by $US11.5 billion, but $US8.6 billion of those inflows were into exchange-traded funds like SPY, QQQ, and MDY.

European equity funds saw their biggest weekly inflow ever, taking in $US5.0 billion.

Below is a complete breakdown of this week’s fund flows, via Hartnett:

Asset Class Flows

Equities: big $US21.4bn inflows; ($6.0bn into LO funds = largest in 9 months)

Bonds: $0.5bn inflows (ends 3 straight weeks of redemptions)

MMF: as in 2011, big MMF outflow followed by big inflow this week post debt- ceiling resolution

Precious metals: $0.7 outflows (6 straight weeks)

Equity Flows

Europe: largest weekly inflows $US5.0bn on record (in absolute terms); 17 straight weeks of inflows

US: $11.5bn inflows ($8.6bn via ETF’s – SPY, QQQ, MDY)

EM: $2.6bn inflows (largest in 6 weeks)

Japan: $0.4bn inflows (7 straight weeks)

Fixed Income Flows

70 straight weeks of inflows to floating-rate debt ($0.8bn)

7th straight week of inflows to HY bond funds ($3.7bn)

Small inflows to IG bond funds ($0.3bn)

7th straight week of redemptions from govt/tsy funds ($1.4bn)

$2.6bn inflows to EM equities, but $US1.6bn outflows from EM debt funds (largest in 8 weeks)

28 straight weeks of outflows from TIPS ($0.2bn)

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