U.S.-stock funds rise 19.3% for the year as investors jump in
Markets are ‘having their cake and they’re eating it too’: Katz
UBS managing director and senior portfolio manager Jason Katz provides insight into market trends.
Like summer surfers, stocks have continued to zoom past the dangers. And fund investors are willing to ride it out.
The series of records for stock indexes has been fueled by robust buying from individuals. JPMorgan Chase strategists estimate that net inflows to individual U.S. stocks as well as exchange-traded funds rose to a record of almost $16 billion in July before an additional $13 billion poured in during August—"very high by historical standards, ending a record summer," the report notes.
Potential dangers abound for the market, including inflation, the virus and global strife. But for now, corporate earnings have been so encouraging that investors are comfortable with stocks. U.S.-stock funds tracked by Refinitiv Lipper (including mutual funds and ETFs) posted an average return of 2.4% in August, to push their year-to-date gain to 19.3%.