Buybacks and ETFs are moving the market as investors shy away from single stocks

Stocks are riding high in 2019 thus far, but recent gains have mostly come through buybacks and inflows into exchange-traded funds while individual equities are shunned, data compiled by Bank of America Merrill Lynch show.

The S&P 500 registered its ninth weekly gain in 10 last week despite the outflow, adding to its sharp gains this year and since the massive fourth-quarter sell-off. Institutions sold individual stocks in every sector except materials and utilities last week, while retail investors dumped individual equities across all sectors. At the same time, institutions bought into ETFs from every sector except consumer staples, communication services and industrials.

Still, the S&P 500 has rallied more than 11 percent in 2019 after dropping more than 9 percent in December. Apparent progress in trade negotiations between the U.S. and China has lifted equity prices in that time. CNBC learned through sources on Monday that talks between the two countries were in the"final stages."

Good... more opportunity for the rest of us.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why bullish investors could be the death of this stock market runOur call of the day from Slope of Hope’s Tim Knight, says investors need to pay attention to their fellow investors, who are so bullish they could drive the second-best start for stocks since 1987 right off the road.
Source: MarketWatch - 🏆 3. / 97 Read more »

Stocks fight to gain altitude as investors watch Powell’s Senate testimony, weigh dataU.S. stocks on Tuesday pare early losses and attempts to break in to positive territory as Federal Reserve Chairman Jerome Powell reiterates the central bank’s newfound wait-and-see approach in congressional testimony. Who chose this picture?
Source: MarketWatch - 🏆 3. / 97 Read more »

Global stocks fall for third day as investors dial down trade hopesGlobal stocks retreated for a third straight day on Thursday as investors reduce... WWG1WGA
Source: Reuters - 🏆 2. / 97 Read more »

Investors don't understand just how important China is for European stocks, asset manager saysInvestors don't seem to understand the importance of China's economy for European stocks, particularly for Germany and Northern Europe, according to Philip Saunders, co-head of multi-asset at Investec Asset Management. Who are these “investors” with neither brains, nor AI ? Is that why Europe has turned a blind eye to their human rights abuses and kowtow like an eunuch these days? merkel is trash
Source: CNBC - 🏆 12. / 72 Read more »