One of the big stories of the year is the incredible return of investor money to US stocks.
After the financial collapse, we saw a huge reluctance among investors to put money into equities, as they instead preferred bonds, or emerging market assets, that’s all changing this year, as the market hits record highs, and squashes out the sceptics.
In a note on fund flow, Bank of America reports:
Largest weekly inflow to US equity funds since June ’08 (note market value of S&P500 index, adjusted for float, exceeded $15 trillion for the first time ever today) Huge $20bn global equity inflows versus $1bn out of bonds.
This one chart shows what an incredible year it’s been. Technically it’s “Developed Market” equities, but everyone knows that the US is the big story in the developed world, and that that’s what’s really driving the show here.
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