The lack of inflows into stock ETFs of late is a notable departure from May, when traders poured $30 billion into the funds during a 7% market bounce. A similar recovery in March saw inflows amounting to $42 billion, while another in January was met with addition of more than $5 billion.
All these attempts of bottom-fishing proved futile as the S&P 500 reversed its course, hitting fresh lows one after another along the way. Now the stock-market bottom feeders have dodged this latest slump by selling the recent rip.
“Investors are increasingly worried about a recession, and are dusting off their bear-case scenarios,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors. “There’s also been a reassessment of the Fed -- right or wrong,” he said, referring to the risk that the central bank will fight inflation at all costs, even if it’s at the expense of growth.
This article was provided by Bloomberg News.