TrimTabs is forecasting January as another down month for stock funds, while predicting that bond funds will show a slight uptick in incoming funds.
TrimTabs, a research fund, estimated investors pulled $5.59 billion from U.S. stock funds from Dec. 26. through Jan.26., despite the promise of a cut in the fed funds rate. As markets such as China and Brazil, once the belles of the ball, have faltered, investors took an estimated $1.03 billion from world equity funds over the same period. That would reverse the trend of international equities' inflow over the past several months.
The Fed's half-point rate cut on Wednesday, which cut the federal funds rate to 3.0%, came too late in the month to salvage January's inflow.
The yield on the 10-year Treasury bond went to 3.70%, boosting prices on both Treasuries and Treasury inflation-protected securities.
On Dec. 26, the yield stood at 4.60%.