Forget earnings: Stocks have two big tailwinds pushing them higher


Traders on the NYSE, May 3, 2021.

Source: NYSE

It’s not nearly earnings anymore: Dividends and large inflows are serving to shares energy ahead.

April buying and selling information is in, and it reveals two surprises: a rise in dividends, and large inflows into equities which can be even stronger than the primary three months of the yr.

Dividends are again

Investors enthusiastic: Big inflows into ETFs proceed

Near-record inflows into ESG, thematic tech and different areas are also supporting prices.

Exchange-traded funds began the yr simply wanting $6 trillion in property below administration, and inflows have continued on a constant foundation each month in 2021.

An further $55 billion was put into fairness ETFs in April, for a yr thus far whole of $258 billion in fairness inflows. 2021 will definitely see a lot higher equity inflows than 2020, when panicked traders threw cash into bond funds.

“The money’s coming from everywhere,” Harry Whitton, senior vice chairman at Old Mission, an ETF market maker, instructed me. “There are people still sitting at home who are putting money into the markets. You are seeing huge interest in [Environmental, Social and Governance] ETFs. You are continuing to see money come out of mutual funds and into ETFs as well.”

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