Investors add $34.1 billion to equity mutual funds in last four weeks

Sun Nov 17, 2013 2:46pm EST

Traders work on the floor of the New York Stock Exchange, November 15, 2013. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange, November 15, 2013.

Credit: Reuters/Brendan McDermid

(Reuters) - Investors poured some $34.1 billion into all equity mutual funds and exchange-traded funds in the past four weeks that ended November 13, the biggest four-week total since January, according to data from TrimTabs Investment Research.

TrimTabs research published on Sunday showed that retail investors have been piling into stocks at the fastest rate since January, when $38 billion flowed into equities.

"The record highs on many major U.S. stock market averages are luring mom and pop back into the market," said David Santschi, chief executive officer at TrimTabs Investment Research in a note.

The S&P 500 .SPX index is up 26 percent year-to-date.

"The intermediate-term demand outlook remains very favorable for U.S. equities," Santschi said.

Investors are putting their money in U.S. equities mutual funds more than global ones. About $19.8 billion flowed into U.S. equity mutual funds, compared to $14.3 billion into global equity mutual funds in the last four weeks.

The average U.S. equity fund has outperformed the average global equity fund since the start of October, rising 5.2 percent compared to 2.4 percent.

As investors flock to the stock market, retail investors continue to flee bonds, research showed. Bond mutual funds have posted outflows in all but two weeks since the start of June. There were redemptions of $13.4 billion in the four weeks ended November 13, TrimTabs said.

In terms of the broader economy, unemployment claims data has improved but income growth in the United States "remains lackluster despite the massive fiscal and monetary stimulus being pumped in," TrimTabs noted.

(Reporting by Liana B. Baker; Editing by Leslie Gevirtz)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (2)
todnwth wrote:
I hope we do not have another crash like in 2002 when all the analysis were saying it was time to invest.

Then we had the depression caused by the republicans who gave the treasury to the rich and then started two wars and made the MILITARY AND THEIR FAMILIES BEAR ALL THE BURDENS AND MAKE ALL THE SACRIFICES FOR THE DISASTER. This was the first time since the world began that any country that did not make ALL ITS CITIZENS BEAR THE BURDENS AND MAKE SOME SACRIFICES FOR A WAR OR WARS.
The average family seen their income drop while the rich could make an additional 292 thousand dollars on every million dollars of TAXABLE INCOME====ROMNEY SHOWED US HOW IT WORKED, HE PAID LESS THAT 15 ON ALL HIS RETURNS FOR 12 YEARS!!!!!!!

Nov 17, 2013 3:35pm EST  --  Report as abuse
todnwth wrote:
I hope we do not have another crash like in 2002 when all the analysis were saying it was time to invest.

Then we had the depression caused by the republicans who gave the treasury to the rich and then started two wars and made the MILITARY AND THEIR FAMILIES BEAR ALL THE BURDENS AND MAKE ALL THE SACRIFICES FOR THE DISASTER. This was the first time since the world began that any country that did not make ALL ITS CITIZENS BEAR THE BURDENS AND MAKE SOME SACRIFICES FOR A WAR OR WARS.
The average family seen their income drop while the rich could make an additional 292 thousand dollars on every million dollars of TAXABLE INCOME====ROMNEY SHOWED US HOW IT WORKED, HE PAID LESS THAT 15 ON ALL HIS RETURNS FOR 12 YEARS!!!!!!!

Nov 17, 2013 3:36pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.