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US Equity Funds Return To Outflows But Bullish Sentiment Jumps
US equity-focused ETFs and mutual funds returned to outflows over the latest weekly reporting period.
The relatively modest $3 billion redemption was the first since mid-September and erased most of the prior week's influx.
YTD, net inflows to US stock funds are essentially flat at just $4.7 billion.
Different week, same story: 2023 was tale of two flows regimes. US equities bled nearly $70 billion through late-May, when Nvidia's shocking beat and raise, followed a week later by a resolutio
Hello, Walt. I’ve been wrapped up in work, hence, busy and preoccupied. Not commenting as frequently as I’ve done before. But I must say it’s quite a time we’re living in. I can’t help but feel the ground is moving beneath my feet, at times just a bit, at other times surging and halting in a whiplash-inspiring motion.
Not that it’s entirely unexpected, but the world is not the same. The actions of Russia, China, and Hamas have the changed the tone of everyone’s daily life. And we’re not without the usual background noise from everyday economic concerns, including the effects of inflation, the radicals among the so-called “conservative” republicans, and simple, stark fear about what will happen next.
There is reason to be concerned about the growing likelihood of world war. In addition, at a global level, we need ongoing innovation in energy production to arrest climate change. And in the United States we need to get through this time of political uncertainty and apparent lack of clarity about who we are as a nation.
Given the uncontrolled variables in the world and in the economic wild, we can easily imagine more chaos to come. But I reckon in the midst of this, the animal spirits in the markets will carry on and render their brand of truth. If there’s a buck to be made, it will be done. I’m rooting for the US Dollar, notwithstanding debt mismanagement by the Congress and the Executive branch, nor the disaffection for the dollar by Xi Jinping. I’m rooting for common sense in spending. I’m rooting for calm to evolve in time over the world political landscape. And let’s not forget rooting for the Fed’s efforts to manage the US economy out of this spinning mass of bad news.
CD. Glad to see you back. About that WW thing. I struck me when you said it. Russia’s already got enough on its plate. And if the big one comes up again I’m willing to commit a box of Omaha Steaks that China will take a hard pass. A big war would be a foolish waste of resources for Xi but it might well offer a real opportunity to pile up dry powder to take care of their main bucket list item across the Formosa Strait. And of course, the US is like the world’s big ol’ Labrador puppy ready to chase a stick anywhere.
The US has already seriously depleted many types of ammo and anti-aircraft missiles supporting Ukraine. Now Israel’s needs will tax us further, especially the Patriot missiles. Meanwhile we are promising everyone more F-15s.
All manageable unless the neo-cons in DC and in the MAGA hustings manage to push us into war with Iran.
With two of the Empire of Evil depleting US supplies, it would be mighty tempting for Xi to take advantage of the situation to make a move against Taiwan, probably a blockade to start.
The US military can only be stretched so far. Nor is it clear that the US populace would want to go to war with China to ensure our supply of iWatches. Especially when a large percentage of the island’s population are not so gung-ho about military conflict with the motherland 90 miles away.
The now reviled Reagan and, to some extent Bush One, were the last conservative presidents when it came to the Middle East. (Review the measured US response to the 1983 truck bombing of the US Marines barrack in Beirut when 241 US servicemen were killed. Or when Bush One stopped short of a full take-over of Iraq.)
Now the GOP is firmly Neo-Con, following the teachings of Cheney, Wolfowitz and Fife who did such a fine job in Iraq once the first wave of fighting ended. (to wit; personal friends who once were old-style “Country Club” Republicans are now screaming for bombing Iran.)