U.S. households will be net sellers of $750 billion in equities this year, according to a Goldman Sachs forecast. Instead, those investors will put money into credit and money market assets, analyst Cormac Conner said in a note Wednesday. High-frequency data show that $51 billion has flowed out of U.S. equity mutual funds and ETFs so far this year, while $282 billion has flowed into money market funds and $137 billion has flowed into U.S. bond funds, he pointed out.
It's downside case shows household selling could total $1.1 trillion. Stocks have struggled this year as i nterest rates surged along with Federal Reserve interest rate hikes , sending some income-seeking investors into Treasurys. Yields move inversely to prices. Recently the bank crisis caused investors to flee into the safety of bonds, causing yields to drop from highs a bit. The 10-year is now yielding about 3.48%.
Perfect buying opportunities ahead. 🙄 GoldmanSachs