Jay Soloff

Are investors chasing US equities? According to Morningstar, investors are sinking more money into stock mutual funds than they have since 2000. For the first 10 months of this year, stock funds pulled in a whopping $172 billion. It's been 13 years since that amount of money has been allocated to equities during a year period ($272 billion in 2000). The jump in interest rates this summer due to tapering concerns caused many bond funds to take losses. That, combined with the 27% returns for the S&P 500 has finally convinced investors to favor equities over fixed income. However, is that the sign of a top? Often times, a major shift in consumer sentiment is a sign things are about to change. Nevertheless, equity valuations are nowhere near as inflated as they were in 2000. Here a link to the article: (VIEW LINK)


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