Looking at the year-to-date flow of funds into different investment types should make one scratch their head in wonder. How can stocks be having the bang-up year they are having when investors are fleeing for safe havens?
One simple and probably accurate explanation is investors, on the whole, get it wrong way more than they get it right. The good news is this has the potential for setting up a continuation into next year. Why? With so much money moved into fixed income investments, as stocks continue to rise, FOMO (the fear of missing out) becomes much greater providing ample fuel for a prolongation of this bull. HEDGE WARNING!!! Of course, this assumes no major event triggers a selloff (like impeachment, worsening of trade wars or, god forbid, fake hot dogs).
See you next week on cyber Monday. Get your credit cards warmed up
Happy Thanksgiving.