Are We Watching a ‘Great Rotation’ Into Stocks?
From The Curious Capitalist
January 28, 2013 - 12:24pm
Good news has a predictable cycle. Initially there is only the surprising information, positive on its face. Then comes a period of skepticism and a suggestion that the news is not so good after all and may even be bad. Finally, with the good and the bad aired (and individuals thoroughly confused), the story languishes for months as truth emerges. We’re in the languishing period now on what may be the most important development for investors in half a decade. Inarguably, money has been piling into stock mutual funds this year and steering the market higher. January likely will end 22 consecutive months of mutual fund investors exiting the stock market. For the week ended Jan. 16, U.S. investors moved a net $3.8 billion into stock mutual funds. That followed $7.5 billion of inflows the previous week, along with another $10.8 billion that was directed to exchange-traded stock funds. This...Continue reading this article »