Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Institutional And Retail Investors Still Do Not See Eye-To-Eye On the Markets
Posted Under: Conceptual Investing
Supporting Image for Blog Post

 

View from the Observation Deck

  1. U.S. equities have posted double-digit returns so far in 2012, yet retail investors chose to liquidate $84.7 billion from U.S. stock funds in the first 10 months of 2012 (see chart).
  2. That suggests that institutional investors have been the ones driving the broader stock indices higher. We covered this angle in a blog post on June 6 ("Retail Investors Give Stocks A No Confidence Vote").
  3. Retail investors have clearly preferred income-oriented funds, excluding money market funds that offer only a few basis points of yield, over growth-oriented funds.
  4. Investors poured $271.9 billion into Taxable and Municipal bond funds in the first 10 months of 2012 (see chart). What is ironic is that many investors seem willing to embrace considerable risk so long as it is accompanied by income.
  5. While investors were redeeming $84.7 billion from U.S. stock funds, high yield bond funds reported net inflows totaling $27.9 billion. High yield corporate bonds are speculative-grade securities (High Yield bond fund totals are included in the Taxable Bond category in the chart).
  6. Perhaps retail investors will alter their negative bias towards U.S. equities once they perceive less headline risk from such events as the "fiscal cliff" and European debt crisis.
Posted on Tuesday, December 4, 2012 @ 3:38 PM • Post Link 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
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Welcome Sight
Gaining Exposure To China’s Economy Without Investing In Its Stocks
Corrections, Evaluations and Washington
This Down And Out Asset Class Coming Back To Life
A Status Update On Homebuilding
Sizing Up The Corporate Bond Market
Expect More (or Less) of the Same
Demand For Dividend-Paying Stocks No Longer Only Tied To Tax Rates
Analysis of October Earnings Reports
A Bridge To Somewhere
Archive
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.
Follow First Trust:  
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 © 2024 All rights reserved.