Investors sent mutual funds focusing on U.S. stocks $6.97 billion in the week ending November 11 according to EPFR Global. That is the most money that's flowed into U.S. stock mutual funds since December of 2008. The money flowing into these funds accounted for a big chunk of the $10 billion in total inflows to stock funds for that week. Emerging market funds saw growth of $2.46 billion, led by China funds. Those funds saw inflows of $246 million.
Analysts said that these inflows were due to central banks agreeing to continue to keep interest rates low. In the United States, the Federal Reserve has said that it will continue to keep interest rates at extraordinarily low levels for "an extended period" and other central banks are doing the same.
Economists have predicted that the economy will continue to grow, although slowly. This, they say, combined with the bottom being hit in earnings, are likely to support stock prices. That is causing the inflow into mutual funds.
The inflow into stock funds will also help support the market. As more money flows into these funds, their managers need to put that money to work. Thus, they buy stocks, and that helps push demand for stocks higher.
The combination of a growing economy, better earnings, and mutual fund inflows will provide support to equities. At the very least, it will help provide a base level of support. These factors may also push stocks higher.
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Analysts said that these inflows were due to central banks agreeing to continue to keep interest rates low. In the United States, the Federal Reserve has said that it will continue to keep interest rates at extraordinarily low levels for "an extended period" and other central banks are doing the same.
Economists have predicted that the economy will continue to grow, although slowly. This, they say, combined with the bottom being hit in earnings, are likely to support stock prices. That is causing the inflow into mutual funds.
The inflow into stock funds will also help support the market. As more money flows into these funds, their managers need to put that money to work. Thus, they buy stocks, and that helps push demand for stocks higher.
The combination of a growing economy, better earnings, and mutual fund inflows will provide support to equities. At the very least, it will help provide a base level of support. These factors may also push stocks higher.
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