Nov 17 Investors poured some $34.1 billion into
all equity mutual funds and exchange-traded funds in the past
four weeks that ended Nov. 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 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.