As U.S. equities erased gains for the year, passive investors bought the dip.
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Rising interest rates and trade war threats are promulgating the rout in equities.
October 11 -
Caution is key across global markets as investors try to gauge whether the selloff is a harbinger or a blip.
October 10 -
One VanEck fund had $574 million of outflows, the most since June and almost 40% of its assets.
October 23
Around $4 billion flowed Wednesday into the two largest ETFs tracking the S&P 500 — State Street’s SPY and BlackRock’s IVV. That’s the most in over a month.
The deluge into the retail-friendly vehicles comes as the gauge posted declines in 19 of 24 days since peaking in September, with bad days landing at almost twice the frequency of the last three corrections.
Call it dip-buying or an ominous signal that the selloff that has wiped out $2 trillion from equity values may keep going until buyers are exhausted. Regardless, it may underscore a rift between bears on Wall Street and bulls on Main Street.
For the third week in a row, individual investors bought stocks while institutional and hedge funds were net sellers, data on client flows compiled by Bank of America showed. In fact, hedge funds and institutional investors have been net sellers on a four-week basis since at least August, according to the data.
