Back to top

Real Time Insight

The big inflows into domestic equity mutual funds in January did not carry over into February despite a rising stock market. In fact, over the last two weeks, more than $1.7 billion has flowed out of domestic equity, according to the Investment Company Institute.

Inflows into bonds remain strong despite record low yields, but this trend has been occurring for several years. Perhaps the biggest surprise in recent fund data is the inflow into world equity mutual funds (world equity funds are those that invest primarily in nondomestic corporations, but they still might have some U.S. exposure).

Over the last two weeks, more than $5.7 billion has flowed into world equity funds. And while domestic equity mutual funds saw tens of billions of dollars in outflows in 2011 and 2012, world equity funds saw a slightly positive inflow over that same stretch. You can see this trend in the chart below:

So why do you think investors continue to pour money into international funds and not domestic ones? And when will the love affair with bonds finally end? Chime in below.

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is The Next Great Innovator that looks to change the direction of our entire economy. Another is a recent IPO that already built a fortress in its segment. Still another, a small cap, has racked up 7 straight positive earnings surprises.

Close This Panel X

Please login to Zacks.com or register to post a comment.