U.S. Equities Go Back on Menu With Biggest Inflows in 13 Weeks

  • Stock funds see net subscriptions on tax reform hopes: BofAML
  • Treasury funds see biggest inflows in 62 weeks on yield hunt

Leuthold's Ramsey Expects 'Softness' in U.S. Stocks

Rediscovering their love for U.S. stock funds, investors added the most money since June during the past week, as the Trump administration plotted strategy for pushing a tax overhaul and the S&P 500 rose to a record.

They poured $1.9 billion into the securities in the week to Sept. 14, Bank of America Merrill Lynch said in a research report, citing EPFR Global data. It was just the second week of inflows since June.

U.S. Treasury funds saw inflows of $2.2 billion, the biggest in 62 weeks, in keeping with the quest for yield, the bank said. Investment-grade bond funds received $4.8 billion of new money, the 38th consecutive week of inflows.

Officials from the Trump administration and congressional Republican leaders have promised a new framework in two weeks for legislation that would overhaul the U.S. tax code -- although they have yet to release any details about how the changes would affect individuals or corporations.

Investors had been shifting funds from U.S. equities to stock markets in Europe, Japan and emerging markets. A net $4.7 billion has been taken out of U.S. equity funds since the beginning of the year, while European stocks are sitting on an inflow of $31.7 billion and Japanese equities $36.4 billion.

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