U.S.-based stock funds take in most cash since May: Lipper

From Reuters - November 2, 2017

NEW YORK (Reuters) - Reluctant investors warmed to stocks in October, stockpiling $19.3 billion in U.S.-based equity funds, marking the first month of positive inflows for the funds since May, when they took in $31.8 billion, Lipper data showed on Thursday.

The massive inflows come as third-quarter earnings seem to validate the strong market gains for stocks this year, with earnings estimated to have risen 7.7 percent over the year prior, according to Thomson Reuters I/B/E/S. The S&P 500 is up 17 percent this year, including dividends.

For their part, money market funds, where investors park cash, recorded withdrawals of $21.3 billion in the latest week ended Wednesday, as investors put money to work in equities.

Some investors still expressed concern that traders are chasing lofty markets.

But Garth Nisbet, a senior portfolio manager at Wells Fargo & Cos asset management unit, said the economy is thriving and that there is more upside to come.

Theres two things that destroy wealth: market timing and bearishness, he said, referring to market skeptics. This is a fairly market-friendly environment.


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