As the market continues to hit new highs, investment giant
Merrill Lynch (ML) released a note to clients that investors are piling into
equities in a big way. Per ML’s chief investment strategist Michael
Hartnett, “FOMO”, or the “Fear of Missing Out”, has triggered a massive inflow
into global equity funds over the last week and month. At $23.9 billion,
it was the seventh largest weekly equity inflow on record, and led to the
highest monthly inflow of $58 billion on record.
Womack Weekly Commentary September 18, 2017 The Markets “In theory, there is no difference between theory and practice, in practice there is.” Yogi Berra was talking about baseball, but the concept also applies to diversification, according to the GMO White Paper, The S&P 500: Just Say No . From the title, you might think the authors – Matt Kadnar and James Montier – don’t like U.S. stocks. They do: “Being a U.S. equity investor over the past several years has felt glorious. The S&P 500 has trounced the competition provided by other major developed and emerging equity markets. Over the last 7 years, the S&P is up 173 percent (15 percent annualized in nominal terms) versus MSCI EAFE (in USD terms), which is up 71 percent (8 percent annualized), and poor MSCI Emerging, which is up only 30 percent (4 percent annualized). Every dollar invested in the S&P has compounded into $2.72 versus MSCI EAFE’s $1.70 and MSCI Emerging’s $1.30.” The au...
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