Investors continue to push into the equities markets and could throw a record amount of cash into stock exchange traded funds, capitalizing on the continued easy money environment.
ConvergEx Group Chief Market Strategist Nicholas Colas projects U.S.-listed ETF asset inflows will hit $220 billion this year, topping last year’s record $188 billion, reports Hung Tran for IndexUniverse.
“Market participants will buy risky assets as long as the Fed continues to buy bonds,” Colas said in the article. “There is definitely a risk-on type of mentality and that’s been very positive for ETF flows this year.”
The Fed’s unexpected decision to maintain its $85 billion monthly bond purchasing plan instigated quick rally, with the S&P 500 hitting a new record high. [Investors Piling Back Into ETFs on Record-High Stocks, Dovish Fed]
“The Fed made such a big point in March that the entire world was loaded up on tapering in September,” Colas asid.