US stocks find favour in 2017
US equities attracted the biggest inflow of funds from investors all over the world in 2017
Investors poured US$24.1 billion into US-based stock funds in the week to December 27, Lipper said, sending a gift to equity markets already on pace to record a year of double-digit percentage gains.
This marks the largest week of inflows for mutual funds and exchange-traded funds (ETFs) collectively since December 2014, according to the Thomson Reuters research service, and comes after US lawmakers finalized a massive corporate tax cut that markets admired.
Cash is also shuffling around during a typically active period for funds, despite holidays, as investors plan for taxes and report end-of-year performance statistics. Equity fund outflows totalled US$22.2 billion the week prior.
The flow result counters the dominant trend in U.S.-based funds this year - a reticence to buy stocks at home despite an S&P 500 index poised to deliver a 2017 return of more than 20%.
Domestic stock funds posted an estimated US$23.4 billion in outflows for the year, according to Lipper, compared to US$165 billion inflows for their counterparts invested abroad and US$283 billion inflows for funds for taxable bonds.
"You see people attracted to equities, but they're not backing up the truck to buy equities at 20-times earnings," said
David Lafferty, chief market strategist at Natixis Investment Managers, referring to the seemingly rich price-to-earnings ratio of the S&P 500. "I don't see any euphoria." This week, though, domestic equity funds pulled in nearly US$18 billion, compared to US$6.4 billion to their internationally oriented peers, according to Lipper.
Funds based in the United States but focused on Chinese stocks took in US$408 million during the week, the largest inflows since June 2015, during a week in which strong demand for copper seemed to presage growth in the emerging market and around the world.
NAMPA/REUTERS
This marks the largest week of inflows for mutual funds and exchange-traded funds (ETFs) collectively since December 2014, according to the Thomson Reuters research service, and comes after US lawmakers finalized a massive corporate tax cut that markets admired.
Cash is also shuffling around during a typically active period for funds, despite holidays, as investors plan for taxes and report end-of-year performance statistics. Equity fund outflows totalled US$22.2 billion the week prior.
The flow result counters the dominant trend in U.S.-based funds this year - a reticence to buy stocks at home despite an S&P 500 index poised to deliver a 2017 return of more than 20%.
Domestic stock funds posted an estimated US$23.4 billion in outflows for the year, according to Lipper, compared to US$165 billion inflows for their counterparts invested abroad and US$283 billion inflows for funds for taxable bonds.
"You see people attracted to equities, but they're not backing up the truck to buy equities at 20-times earnings," said
David Lafferty, chief market strategist at Natixis Investment Managers, referring to the seemingly rich price-to-earnings ratio of the S&P 500. "I don't see any euphoria." This week, though, domestic equity funds pulled in nearly US$18 billion, compared to US$6.4 billion to their internationally oriented peers, according to Lipper.
Funds based in the United States but focused on Chinese stocks took in US$408 million during the week, the largest inflows since June 2015, during a week in which strong demand for copper seemed to presage growth in the emerging market and around the world.
NAMPA/REUTERS
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