13 replies to this topic

[Rogerdodger]

Melt up? More money poured into stocks in past five months than last 12 years

Kitco
LONDON (Reuters) -

Equity funds have attracted more than half a trillion dollars in the past five months, exceeding inflows recorded over the previous 12 years, according to data from BofA, which has likened the stampede to a "melt-up" in markets.

The flows are also raising fears of a pullback from record highs, given valuations are at the highest since the dotcom bubble of the late 1990s, with the S&P 500 trading at nearly 22 times forward earnings.
Kamal, however, said with hopes fading on bonds offering a real return, there is no alternative to stocks.

The latest sentiment survey by American Association of Individual Investors (AAII) showed retail investors are their most bullish in the past three years.

 

AAII chart:
https://schrts.co/KQtnQxpf
 

Edited by Rogerdodger, 09 April 2021 - 12:26 PM.

[12SPX]

I know very interesting!  Current earnings are at 42 but the free money keeps it going it seems lol!  This is why I worry about waking up any morning with a -5% fall in hand and that's just a normal pullback lol but could occur at any time, just need a reason!! 

[andr99]

it' s a pandemic guys........they're throwing free money into it and they will go on until the pandemic is over, because they don' t have any another option. I will start to worry when the pandemic is over and newspapers say the economy is strong. At that point they will stop all the injections of money and the stock market will go on its own. I think we can all imagine where it will be headed then. You cannot inject money ad infinitum.....you cannot hide inflation forever. And every action has a counter action........you can manipulate the market for a while, but at the end it will take its revenge.  We will pay this pandemic in the years to come.........all thanks to the chinese government and its markets of wild animals butchered real time in front of buying clients....and this is just the best option, the other one is linked to the wuhan laboratory....whatever they say.   

Edited by andr99, 09 April 2021 - 11:11 AM.

[andr99]

The World Health Organization has said it comes from a wild animal, but they haven' t yet identified which one. So it comes from a wild animal, but they don' t know which one. Laughing my @@@ out........I would expect that they say it comes from a wild animal  AFTER they have identified which one, but no matter.... it comes from there even though they don' t know why it comes from there. LAUGHABLE.

 

I think china is a great contributor to that organization.......but maybe I' m wrong.....maybe

Edited by andr99, 09 April 2021 - 11:21 AM.

[Rogerdodger]

As the kids now are all saying: "Got to get me some dogecoin with this free money."

This free money reminds me of the story of the Las Vegas gambler who begged a stranger for some money for a sandwich.

The stranger replied, "How do I know that you won't just gamble with that money?"

The beggar pulled out a roll of $100 bills and replied, "Oh I have gambling money, I just don't have any money for food."

[Lysis]

The WHO is somewhat right.  The virus jumped from animal to human -- in a lab.

 

4150 before 4050 at this rate.

Edited by Lysis, 09 April 2021 - 01:27 PM.

[fib_1618]

Equity funds have attracted more than half a trillion dollars in the past five months, exceeding inflows recorded over the previous 12 years, according to data from BofA, which has likened the stampede to a "melt-up" in markets.

 

And how much of this same capital was taken out of the market in just the month of March 2020 alone?

 

Context, like opposing viewpoints, are always needed...and wanted.

 

Fib

[da_cheif]

bool markets are soooooo boring.....and the spin most are putting on it is laffable   675ono   snort

[pdx5]

 

Equity funds have attracted more than half a trillion dollars in the past five months, exceeding inflows recorded over the previous 12 years, according to data from BofA, which has likened the stampede to a "melt-up" in markets.

 

And how much of this same capital was taken out of the market in just the month of March 2020 alone?

 

Context, like opposing viewpoints, are always needed...and wanted.

 

Fib

 

Is there such a thing as taking money out of the market? Because for every seller taking money out, there is a buyer who buys what the seller is selling and puts the same money in what the seller took out.   I don't believe the amount of money taken out of the market in March 2020 was anywhere near what NEW Money has come in during the past 5 months since the "stimulus" money was being dropped from B-52 bombers.

[fib_1618]

 

 

Equity funds have attracted more than half a trillion dollars in the past five months, exceeding inflows recorded over the previous 12 years, according to data from BofA, which has likened the stampede to a "melt-up" in markets.

 

And how much of this same capital was taken out of the market in just the month of March 2020 alone?

 

Context, like opposing viewpoints, are always needed...and wanted.

 

Fib

 

 

Is there such a thing as taking money out of the market? Because for every seller taking money out, there is a buyer who buys what the seller is selling and puts the same money in what the seller took out.   I don't believe the amount of money taken out of the market in March 2020 was anywhere near what NEW Money has come in during the past 5 months since the "stimulus" money was being dropped from B-52 bombers.

 

The only buyer needed for massive selling is either the specialist or market maker of the issue...money then initially goes to cash (money markets) for the trader.

 

So, although a half a trillion dollars has come in over the last 5 months, more than FOUR trillion left the markets in March 2020 alone...around 12% of what was "lost".

 

Some money moved into the debt class (for safety), commodity class (a lower dollar), housing (nesting)...a whole myriad of different financial related areas.

 

Anyway....

 

The coronavirus sell-off sent investors fleeing into money market funds, which ballooned well above $4 trillion, surpassing the peak of the financial crisis, according to research by LPL Financial.

 

Here's the article on it: https://tinyurl.com/y9n9l6ry

 

My opinion? I believe that a very small portion of stimulus money given back to the public wasn't used to buy stocks...it was likely used to keep on living.

 

Fib