Money Flows into the U.S. stock market have been strong. Especially strong flows are being detected into the discretionary and financial sectors; specifically banks and retailers. These have been lagging, if not beaten down groups. However, there is general positive flow across the board. A few sectors lag for a time then new money rotates to these and they begin to catch up. This is very healthy action indicating a broad appetite for equity ownership.
Where is all this money coming from? In addition to domestic investors that got out during the fourth quarter sell-off last year, international sources seem to be a big part. The desire to own U.S. based assets by foreign investors is very strong and may be increasing. This is one reason the Lonely Bull remains positive for good results this year. Other reasons are still strong fundamentals, low interest rates and fiscal stimulus as a result of large Federal deficits. Stay steady, my friends.
The Lonely Bull