As expected, the market is taking a respite from the runaway train that has become the S&P and Dow since November 2016. Now that the Trump agenda is souring fast, investors are taking some money off the table despite a solid earnings season.
U.S. equity funds posted outflows (over $ 1 billion) for the sixth time in the past eight weeks, based on EPFR Global data for the week ending March 10.
Overall, investors put $8.7 billion into EPFR Global-tracked equity funds; bond funds took in $4.4 billion and U.S. money market funds saw over $14 billion in fresh inflows. Dividend equity funds also hit an eight-week high. Investors continue to gravitate to ETFs. Within the active management universe, only large cap value funds posted inflows.
One takeaway from the weekly EPFR data is that Puerto Rico did not scare off muni-bond investors. Puerto Rico filed for bankruptcy protection on May 3. The island dependency is $70 billion in the hole, more than half its total GDP.
Municipal bond funds shrugged it off. The SPDR Nuveen Barclays Muni-bond ETF (TFI 45,83 +0,09 +0,20%) rose just around 0.27% in the last five days, but that’s been better than the iShares Treasury short term (IEI 114,79 -0,47 -0,41%) and the iShares Treasury 10-year (IEF 93,14 -0,62 -0,66%) ETF.
Fixed income investors are beginning to re-focus on the Federal Reserve. The Open Markets Committee meeting on June 14 will give everyone a better sense on rate hikes. Consensus has the Fed hiking interest rates for the second time this year and third time since late in the fourth quarter.
Flows into U.S. bank loan funds, often viewed as a play on rising interest rates, dropped to their second lowest total since their current inflow streak began in mid-November, EPFR Global said. Sixth Week Of Drawdowns In U.S. Stock Market
As expected, the market is taking a respite from the runaway train that has become the S&P and Dow since November 2016. Now that the Trump agenda is souring fast, investors are taking some money off the table despite a solid earnings season.
U.S. equity funds posted outflows (over $ 1 billion) for the sixth time in the past eight weeks, based on EPFR Global data for the week ending March 10.
Overall, investors put $8.7 billion into EPFR Global-tracked equity funds; bond funds took in $4.4 billion and U.S. money market funds saw over $14 billion in fresh inflows. Dividend equity funds also hit an eight-week high. Investors continue to gravitate to ETFs. Within the active management universe, only large cap value funds posted inflows.
One takeaway from the weekly EPFR data is that Puerto Rico did not scare off muni-bond investors. Puerto Rico filed for bankruptcy protection on May 3. The island dependency is $70 billion in the hole, more than half its total GDP.
Municipal bond funds shrugged it off. The SPDR Nuveen Barclays Muni-bond ETF (TFI 45,83 +0,09 +0,20%) rose just around 0.27% in the last five days, but that’s been better than the iShares Treasury short term (IEI 114,79 -0,47 -0,41%) and the iShares Treasury 10-year (IEF 93,14 -0,62 -0,66%) ETF.
Fixed income investors are beginning to re-focus on the Federal Reserve. The Open Markets Committee meeting on June 14 will give everyone a better sense on rate hikes. Consensus has the Fed hiking interest rates for the second time this year and third time since late in the fourth quarter.
Flows into U.S. bank loan funds, often viewed as a play on rising interest rates, dropped to their second lowest total since their current inflow streak began in mid-November, EPFR Global said.