Buying safer assets
Despite a strong recovery in stock prices this year, inflows into equity ETFs and mutual funds have remained uneven. At the same time, inflows into products that track bonds have been resilient. This suggests that weak global growth, trade war concerns, and worries about earnings have weighed on investor sentiments, even as the S&P 500 flirts with all-time highs. If stocks continue to shrug off the worries and central banks become more dovish, stocks could benefit from a resurgent shift back by investors.
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