The rally in stocks to start 2023 hasn’t kept investors from pulling billions out of U.S. equity funds to start the year. But there’s a hitch.
While roughly $31 billion has left U.S. stock mutual funds and exchange-traded funds in the past six weeks, according to Refinitiv Lipper data, roughly the same amount has poured into bonds. High inflation and the Federal Reserve’s aggressive pace of interest rate hikes resulted in a punishing 2022 for investors in both stocks and bonds. Last year’s pain, however, has begun to be replaced by growing optimism around U.S. inflation that looks to be receding and by hopes that the Fed potentially may be nearing the end of its rate-hiking cycle.Economists recently have been warming to the idea that the U.S.
The Dow Jones Industrial Average DJIA was up about 300 points on Monday and roughly 3.1% on the year, while the S&P 500 index SPX was 7.6% higher to kick off 2023 and the rates-sensitive Nasdaq Composite Index COMP had advanced almost 13.5% since January, according to FactSet data.
No we’re not it’s the “age adjusting” mutual funds doing that