Q3 2022 Fund Flows: Investors Sound the Recession Alarm, Move into Money Markets, Flee Fixed Income

In the third quarter of 2022, we saw: the Federal Reserve hike rates twice by 75 basis points, the U.S. 10-Year Treasury Rate increase from a low of 2.6% in August to nearly 4% by the end of September, and the 30-Year Mortgage Rate tick up drastically from 5 to nearly 7%.  The VIX has … Continued

Q2 2022 Fund Flows: Short-Duration Bonds & A Gamble on Alts

Through Q2 2022, the S&P 500 (^SPX) and Bloomberg US Aggregate (^BBUSATR) plummeted even further to be down 16.06% and 8.99% year-to-date, respectively. Inflation isn’t doing stocks or bonds any favors and continues to climb despite the Fed’s rate hikes.  Looking back at asset flows data from Q1, it appeared that many investors tried to … Continued

Q1 2022 Fund Flows: March Buyers Bring April Sellers?

2021 ended with double-digit returns by stocks for the sixth straight year in a row. Through one quarter of 2022, there is clearly a lot of ground to make up. The S&P 500 (^SPX) and Bloomberg US Aggregate (^BBUSATR) are off to a rocky start… A late Q1 rally by stocks lost steam in early … Continued

2021 Fund Flows: Fixed Income & Large Blend Win, Growth Loses

After bouncing back from a Q3 dip and fighting through volatility all year, the S&P 500 (^SPX) ended 2021 just below its all-time high. The index’s 28.7% total return continues quite a streak for stocks, making 2021 the fifth time in the last 6 years that the S&P 500 has posted double-digit returns.  Meanwhile, in … Continued

Fixed Income, Equity-Blend Funds Top Q3 2021 Fund Flows

The chart below shows that through the end of Q3 2021, the S&P 500 (^SPXTR) was up 15.9% including dividends, the Bloomberg US Aggregate (^BBUSATR) fell 1.6%, and the Bloomberg Barclays Global Aggregate (^BBGATR) dropped about 4.1%. Mostly moving in tandem, US bonds diverged from their global counterpart in early Q3, refusing to go lower … Continued

Is the Market Back to Normal? Q2 2021 Fund Flows

With increasingly available vaccines, businesses reopening, and most people eager to get out of their homes, Q2 saw a dramatic rise in the S&P 500, up 15.25% in 2021 through June. Meanwhile, the Bloomberg Barclays US Aggregate moved higher from its 2021 low but was still down 3.21% at the midway point of the year. … Continued

2020 Fund Flows: Active vs Passive, Thematic ETFs & More

Since bottoming out on March 23, 2020, the S&P 500 has climbed 75% on a total return basis, and the Bloomberg Barclays US Aggregate is nearly 6% off its low. Momentum in stocks has continued through January 2021, but recent jumps in Treasury Rates have slowed price appreciation of investment-grade fixed income. The calendar no … Continued