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Investors Ride The Wave As US Stock Inflows Near Half-Trillion
US stocks: Folks are still buying them.
ETFs and mutual funds dedicated to US equities took in $13 billion on net over the latest weekly reporting period. It was the 10th straight inflow and the 12th in 13.
As the updated figure below makes clear, the word "inexorable" isn't hyperbole in this context. Investors are convinced of the "TINA" narrative -- determined there's no alternative for US stocks at a time when both the European and Chinese economies are struggling, and considering the exten
I’m sure you’ve got an answer to that question. Want to share?
But what happens when the majority of equity investment comes to be managed passively?”
Answer: The stock market will be prone to violent and extreme swings.
This answer is based on my experience in owning shares in a publicly traded company, in which the CEO/founder owns 94% of the shares. In the last 10 years, he has never sold any, but the 6% that is publicly traded is subjected to extreme manipulation – in both directions. The resulting investment situation, for the few outside investors, is nothing short of “volatile”- as in similar to living with someone who is on the spectrum of “manic depressive”. This requires an investor to be a believer in the long term potential success story (in order to make money) of any company, or pool of companies, in which one passively invests.