Investors are going stock crazy, and they actually put a huge amount of money to work right before the big Fed decision.
Global equity funds attracted the largest inflows since at least 2005 in the week ended Sept. 18 as investors piled into stocks before the Federal Reserve’s decision to maintain monetary stimulus.
The funds lured a net $US25.9 billion in the period, Wei Liang Chang, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today, citing data from EPFR Global.
The flows were quite lopsided. Virtually all of the money went to developed market funds.
That being said, with the Fed decision, keeping the ultra-easy money going, it’s plausible that the money will start flowing back out to emerging markets again.
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