Monday, 27 April 2015

Stocks hit records despite absence of funds inflows

Stocks have been having a good run again recently.

The Standard & Poor's 500 rose 1.8 percent last week to close at a new high. The Nasdaq Composite jumped 3.3 percent to wipe out its losses since the dot-com bubble and hit a record high.

Riskier stocks have also done well. Small stocks have significantly outperformed the S&P 500, as have emerging market stocks.

However, strategists at Bank of America Merrill Lynch sounded a note of caution last week.

They said in a note on Thursday that even as US stock markets have been making record highs, investors have been pulling money out of US stock funds.

“Correction risks will grow in [the] absence of fresh inflows in coming weeks,” wrote the strategists.

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