The blame game for the market declines has started, all of it legit. But in truth, haven’t we known the market was expensive, and a correction overdue?
While global equity ETFs continue to draw big inflows despite steep losses over the first five trading days of February, there is no such optimism among investors for U.S. equity ETFs.
Bond funds have third largest inflow on record in January, while global equity funds have second largest.
Bond funds took in more than twice the amount of investor money as equity funds did in 2017, despite being outperformed by equities six to one. Investors are now making up for lost ground.