What to Make of This Rush into Global Equity Funds

Take a look at this “’stunning’ new record”

by Bob Stokes
Updated: March 24, 2021

Twelve years into a U.S. stock market uptrend that began in March 2009, investors are still pouring into equities -- not only in the U.S., but globally.

Here's a chart and brief commentary from our March 5 Global Market Perspective:


In mid-February, BofA Global Research placed equity flows over the prior sixteen weeks at $414 billion, a "stunning" new record.

Now, here's an update on investors' zeal for owning shares from a March 19 Marketwatch headline:

Investors poured record $56.8 billion into stock-market funds as stimulus checks arrived

Many market participants seem to be forgetting that stock prices can go down, as well as up.

Indeed, the fear of a stock market downturn is almost non-existent.

As Business Insider said on March 17:

The stock market's fear gauge [or the CBOE Volatility Index] fell below... the 20 level [on March 16] and hit its lowest point since the start of the COVID-19 pandemic.

Well, from our decades of market observation here at EWI, when investor fear is exceptionally low, that's the very time to start anticipating a change of trend.

You don't have to go too far back in history to find a case in point -- only a little over a year.

Here's a Wall Street Journal headline from Jan. 16, 2020:

Stocks Have Rarely Been This Quiet in the Past 50 Years

The WSJ article went on to say:

The S&P 500 is in one of its longest streaks without a 1% daily move in the past five decades.... The Cboe Volatility Index, or VIX, which measures expected swings in the S&P 500, is down 35% in the past 12 months. Known as Wall Street's "fear gauge," it is also well below its 20-year average.

Well, the S&P 500 topped just a month later, and by March 23, 2020, CNBC said:

The Fastest 30% Sell-Off Ever

Now is the time to find out what Elliott wave analysis suggests is just ahead for stocks in the U.S. and for major equity markets around the globe here in 2021 -- so you can prepare.

Follow the link below to get the insights you need inside our Global Market Perspective.

Buy, Sell or Hold?

This is the question that active investors the world over face every trading day.

After all, there's real money at risk -- your hard-earned money.

EWI's 50+ pages of our Global Market Perspective aim to help you assess and manage risk with coverage of 50+ worldwide markets.

Right now, our team of 25+ analysts see opportunities -- but also extreme financial danger.

Get their global financial insights so you can prepare for what they anticipate next.

It's all inside our professional-grade Global Market Perspective, which brings you coverage of global equities, forex, metals, rates, energy, cryptocurrencies and much more.

Follow the link below.

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