Surge of cash into stocks could mean meltup

Richard Bernstein, CEO of Richard Bernstein Advisors, thinks that equities will go higher next year.

“Earnings around the world are still accelerating,” Bernstein told CNBC last week. “It's really hard to get a bear market going when earnings are accelerating.”

However, Bernstein added that “most people really are bearish”.

Which would seem strange to hear after another CNBC article reported a surge in investor cash into stocks.

Citing data from Bank of America Merill Lynch, the report said that large inflows of cash into ETFs more than offset outflows from mutual funds.

“The flow-of-funds case for a meltup is mounting as more hot money pours into equity ETFs,” said Ed Yardeni, founder of Yardeni Research.