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Fund investors ignore "accelerating" corporate profits, buy bonds
2017年10月4日 / 下午4点29分 / 15 天前

Fund investors ignore "accelerating" corporate profits, buy bonds

    By Trevor Hunnicutt
    NEW YORK, Oct 4 (Reuters) - Fund investors snorted at record
U.S. stock prices during the latest week, pulling the most cash
from domestic equities since August, Investment Company
Institute (ICI) data showed on Wednesday.
    Domestic equity funds posted $9.3 billion in withdrawals
during the week ended Sept. 27, while international stock funds
reeled in money for a 43rd straight week, the trade group said.
World stock funds pulled in $2.9 billion during the week, lower
than their $4.6 billion-a-week average this year. The data
covers mutual funds and exchange-traded funds based in the
United States.
    Investors are ignoring the fact that corporate earnings have
been "accelerating," according to Richard Bernstein, chief
executive officer at Richard Bernstein Advisors LLC.
    "The whole discussion - even to some extent the political
discussion - is ignoring how strong corporate profits have been.
With the way the political conversation is going today you'd
think corporations are suffering," he said.
    S&P 500 earnings have grown, year over year, for the
last 11 quarters, according to Thomson Reuters I/B/E/S, and are
expected to continue that trend as companies start reporting
third-quarter earnings this month. The S&P 500 charted a record
high again on Wednesday.
    Yet bonds have been far more popular with fund investors.
U.S.-based bond funds have brought in more than $2 for every $1
gathered by equity funds this year, according to data from
Thomson Reuters' Lipper research unit.
    "The bond market is outrageously speculative," said
Bernstein.
    "I don't understand why people think the bond market is safe
and rational these days. I don't buy it for a second."
    Bond funds pulled in $6.7 billion during the latest week,
adding a 40th straight week to their inflow streak, ICI's data
showed.
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
               9/27    9/20    9/13    9/6     8/30/2017
 Equity        -6,404  1,006   5,003   -231    8,190
    Domestic   -9,346  -2,137  2,096   -2,937  3,683
    World      2,942   3,143   2,907   2,706   4,506
 Hybrid        -905    901     -903    -1,186  -758
 Bond          6,707   11,083  9,594   6,450   5,354
    Taxable    5,965   10,171  8,686   5,924   4,601
    Municipal  743     911     908     527     753
 Commodity     861     -134    125     980     982
 Total         260     12,856  13,819  6,013   13,767
 
 (Reporting by Trevor Hunnicutt; Editing by David Gregorio)
  

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