equity funds: Nor is this year a fluke, according to Market Watch. Over the past decade investors have pulled more than 400 billion out of such funds, while the S&P 500 SPX, 0.21% with dividends has gained more than 14%. I'm not so sure about this contrarian interpretation of the fund flow data. Investors this year so far have pulled more than 24 billion out of U.S. stock funds and ETFs, even as the broad market has turned in one of its strongest January-May performances in years. A more detailed analysis suggests that the fund flow data tells us little about the stock market's intermediate- or longer-term trends. As you can see from the accompanying chart, in those two calendar years there was a sizeable net inflow into U.S. equity funds, and far from falling the U.S. stock market in each of those years rose at an above-average pace 32.3% and 13.7%, respectively, as measured by the dividend-adjusted S&P 500. Take 2013 and 2014, for example.
(news.financializer.com). As
reported in the news.
Tagged under equity funds, january-may performances topics.