WTF is going on in stocks ... Watch The Flows!
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
Think back to 2007. If someone would have told you that almost $600 Billion would be withdrawn from Domestic U.S. stock funds over the next six years? What would you have said to them if they then told you that the S&P 500 would be at all-time highs? "Hmmm" at the least!
At times like this when the Dow and S&P 500 is hitting all-time highs, it is common to wonder if too many people are invested in the markets. Is a decline ready to happen? Does the table below have something to do with the common assertion that "this is the most hated rally ever"?
Stocks hitting all-time highs with outflows does make me question a lot of things, one of them being "what would happen to stocks if they would experience only part of the $1.3 Trillion that bond inflows have seen over the past six years?"
WTF? For sure ... which stands for "Watch The Flows!"
For information about Kimble Charting Solutions, send an email to email@example.com.