For the last week $21.6 bln. were withdrawn from US based stocks. From Bonds were withdrawn $2 bln. for the same period, as for the week before that the sum was $5.8 bln.
Investors continue to withdraw funds from Stock mutual funds even when there was a strong rally in the Stock indices, since the end of the Presidential elections. The rally was induced by the promises from Donald Trump that he will help secure and appropriate funds for investments in infrastructure and spur inflation. The stocks helped DJIA index reach almost 20,000 points.
Data from Lipper show that for the last 41 weeks, consecutively funds are being taken out from mutual funds and stocks. Even from funds that track and trade the market indices showed net negative at year end.
This may be due to year end accounting and tax purposes. These funds may be invested back in as quickly as they were withdrawn.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.