Saturday, August 26, 2017 9:04:42 AM
Re: US Stocks Recent Net Outflows ............
This article nicely articulates what has been happening in the last 10 weeks.
https://www.cnbc.com/2017/08/25/investors-pull-billions-from-us-stocks-in-longest-streak-since-2004.html
It mentions US markets hitting new highs even while the outflows continue. I've mentioned before that market breadth can weaken even as indexes rise.
This graph shows the start of the weakening recently. Cap Weighted indexes tend to rise even under such circumstances as investors concentrate more of their available funds into fewer and fewer of this year's winners. I think this may be the explanation.
The flip side of the US outflows has helped my international ETF portfolio. There are nine positions in it of style based funds (small to large cap value and growth plus emerging markets and intl REITs). So far in 2017 that portfolio has risen 16.7% with AIM directed sales in every ETF. Total number of sales transactions are 14 so far. Only larger cap emerging markets is currently low on cash while overall cash is around 25% right now.
So, even as the US markets have done reasonably well this year, the real story for 2017 has been on the international front. If someone had asked me a year ago what part of my portfolio was going to shine in 2017, I don't think I would have suggested "international." This has been a pleasant surprise after several years of very modest performance in that same segment.
This article nicely articulates what has been happening in the last 10 weeks.
https://www.cnbc.com/2017/08/25/investors-pull-billions-from-us-stocks-in-longest-streak-since-2004.html
It mentions US markets hitting new highs even while the outflows continue. I've mentioned before that market breadth can weaken even as indexes rise.
This graph shows the start of the weakening recently. Cap Weighted indexes tend to rise even under such circumstances as investors concentrate more of their available funds into fewer and fewer of this year's winners. I think this may be the explanation.
The flip side of the US outflows has helped my international ETF portfolio. There are nine positions in it of style based funds (small to large cap value and growth plus emerging markets and intl REITs). So far in 2017 that portfolio has risen 16.7% with AIM directed sales in every ETF. Total number of sales transactions are 14 so far. Only larger cap emerging markets is currently low on cash while overall cash is around 25% right now.
So, even as the US markets have done reasonably well this year, the real story for 2017 has been on the international front. If someone had asked me a year ago what part of my portfolio was going to shine in 2017, I don't think I would have suggested "international." This has been a pleasant surprise after several years of very modest performance in that same segment.
Best regards,
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