Investors are pouring more money into stock mutual funds in the U.S. than they have in 13 years, attracted by a market near record highs and stung by bond losses that would deepen if interest rates keep rising.
Stock funds won $172 billion in the year’s first 10 months, the largest amount since they got $272 billion in all of 2000, according to Morningstar Inc. (MORN) estimates. Even with most of the cash going to international funds, domestic equity deposits are the highest since 2004.
The real tell for the rally will be in the IWMs and QQQs. Consider the following charts:
Both the IWMs (top chart) and QQQs (bottom chart) have been rallying since mid-Spring. All the EMAs are moving higher indicating a short, intermediate and long term rising trend. Both also have MACDs with have decreased but with both also printing or just about to print by signals.
