Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube

  Why U.S. Stock Funds Could See Year-End Rally - MarketWatch.com

Bob Carey quoted at MarketWatch.com ...

Keeping the Powder Dry

Indeed, for many potential buyers nowadays it pays not to play. Investors have been raising cash in an attempt to keep powder dry, and this summer the already jammed sidelines became even more crowded.

More than $71 billion fled U.S. stock funds in the quarter through Sept. 21, with an exodus of $23 billion in the week of Aug. 10 alone, according to the Investment Company Institute, an industry trade group. About three times as much money poured out of domestic funds in the third quarter as in the previous quarter.

When money did go into stocks over the quarter, it was most often through hybrid or balanced funds that also invest in bonds. For others, pure bond funds were the only good option. As has been the case all year, long-term government bond funds proved especially lucrative. Read more: Why government bond funds surged in the third quarter.

"It's going to be a couple of years before investors are net buyers of equity funds," said Bob Carey, chief investment officer at First Trust Advisors L.P. "Investors want cash flow."

Investors' laser-like focus on stock dividends and bond income will dissipate once the market emerges from its slump, Carey added. "It's not that different from the mid-1990s as we were coming out of the 1990-91 recession," he pointed out. "Five years later everything with a dividend was considered passé."

Posted on Tuesday, October 4, 2011 @ 8:39 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts

Come in off the Ledge
Adding High-Dividend Stocks to Your Portfolio
US Stocks Week Ended September 23, 2011
US Economy and Credit Markets Week Ended September 23, 2011
The Market Responds to the Twist
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.