Equity Outflows: Equity and Outflows

equity outflows: Caption outside of wrapper for normal article images This has been a huge question for us How this is possible Jared Woodward investment strategist at Bank of America Merrill Lynch told Market Watch, according to Market Watch. He said although it isn't unprecedented for equity fund flows to be negative while stock prices climbed, the pace and magnitude of the stock market's rise and equity outflows are much greater so far this year. For the quarter, the S&P 500 SPX, 0.46% rose 14%, and added another 1.9% so far this month, putting the broad-market index just 1.3% shy of its Sept. 20 record, even as U.S. equity funds posted outflows of 39.1 billion, according to a Bank of America analysis of EPFR data. Back in 2016, equity outflows totaled 93 billion, but the accompanying 5% rise in global stocks was far less potent than this current period, the analysts said. A New York Times article paywall back in February also made note of the disparity between stock gains and outflows, pointing to buybacks as a possible source of support for equities. Market Watch Caption outside of wrapper for normal article images spx ytd rally Woodward and his colleagues theorized in a Thursday research report that the divergence between outflows and outsize gains, perhaps, can be explained by corporate buybacks, as S&P 500 firms have repurchased 227 billion of their own stock in the first quarter of 2019, according to Fact Set data, up from 143 billion in the first quarter of 2018. (news.financializer.com). As reported in the news.