High-spirited investors buy
U.S. stock funds for fifth week in a row
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[March 03, 2017]
By Trevor Hunnicutt
YORK (Reuters) - Investors piled into riskier assets again in the latest
week, pouring cash into U.S.-based funds invested in stocks and bonds
girded against inflation, Lipper data showed on Thursday.
U.S.-based funds invested in stocks pulled in $7.3 billion during the
week ended March 1, a fifth straight week of inflows, while taxable bond
funds attracted $2.8 billion, the research service's data showed.
The week included a speech by U.S. President Donald Trump that was seen
as moderate in tone, comments by Federal Reserve policymakers that
suggested an interest rate hike could come as soon as this month and an
endorsement of the market and index funds by billionaire Warren Buffett.
U.S.-based stock exchange-traded funds attracted $8.6 billion during the
week, capping a ninth straight month of inflows.
The Dow Jones Industrial Average surged past 21,000 for the first time
during the week and shares of messaging app builder Snap Inc on Thursday
rose 44 percent on their first day of trading.
"The market has gotten to be pretty dear," said Tom Roseen, head of
research services for Thomson Reuters Lipper. "Something's going on that
people apparently like."
Inflation-protected bond funds and loan-participation funds, designed to
thrive in an environment of rising consumer prices or rates, extended
their streaks of inflows that have lasted all year.
But investors also showed caution on what were some popular bets in
recent weeks, pulling cash from Japanese stock funds in only a second
week of outflows this year and from financial sector funds for the first
time in five weeks.
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was thought of as a good "value" bet in a rebound because of its stocks'
relatively attractive prices while financials are thought to prosper from
deregulation under Trump and higher lending costs prompted by the Fed raising
Municipal bond outflows of $346 million during the week broke a seven-week
streak of inflows.
The following is a broad breakdown of the flows for the week, including mutual
funds and exchange-traded funds:
Sector Flow Chg % Assets Assets Count
All Equity Funds 7.284 0.13 5,791.821 11,754
Domestic Equities 6.499 0.16 4,153.865 8,392
Non-Domestic Equities 0.785 0.05 1,637.956 3,362
All Taxable Bond Funds 2.791 0.12 2,372.489 5,932
All Money Market Funds -5.882 -0.23 2,552.363 1,034
All Municipal Bond Funds -0.346 -0.09 371.748 1,409
(Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and Leslie Adler)
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