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Investing 201

3 surprises about the 2013 stock rally

Friday, May 24, 2013 - 02:11

The S&P 500 in on track for its best January-through-May run since 1997. But which firms are outperforming the index? Where’s the money coming from? And who’s making the most money? Here are the answers.

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You know stocks soared to record highs but here's what you don't know about this big rally. Number one it's made in America. Reuters data show that investors buying stocks of companies that do business in the US and those stocks have performed better. So far this year companies that earn at least 95% of their revenues in the US have outperformed the overall S&P 500. To the rich really are getting richer. The number of middle class stock investors has declined since 2001. Service market is only making a select few more flush with cash. 75% of families that -- zero or under 101000 dollars. Of stock and so. The stock market even doubled in value. Most of that gain is going too crude to -- people who are already very wealthy. Number three investors are still piling in the bonds. Yep even at the S&P 500 is having its best year since 1997. Investors still gravitate toward the safety of low. Yielding bonds. Basically receive equity funds in about a 105 billion dollars net new money. While at same time fixed income funds -- received about a 114 point nine so clearly. There is no Korean rotation out of fixed income and equity -- so how can that be. The money that is coming -- the stock market is coming from cash holdings these are coming from underneath the mattresses or. Actually probably coming out of bank accounts it's net new money coming on industry. Of course the biggest potential surprise for investors could be when the rally ends what hotshot investor offers this yes. When it gets the point where. Everyone becomes completely complacent about it being safe tonight I think you probably in the eight inning of that that that creates the and defeat of the cycle. So in one way this stock market rally is like all the other rallies before it's. Even the smartest investors can't tell you when it's gonna end.

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3 surprises about the 2013 stock rally

Friday, May 24, 2013 - 02:11