The Latest Market Commentary From Our Strategists

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Daily Blog

Thursday, July 27, 2017
Weekly fund flows continued their mixed trend; cumulative equity flows, despite a multi year bull market, have yet to turn positive.

Today we note a double contrary buy signal. It is common to regard retail investors’ timing as a contrarian signal, that is they tend to “buy high and sell low” instead of the recommended opposite “buy low and sell high”. But, hedge funds — which have had a horrific record over the past few years — are now following retail investors’ lead by bailing out of equities just as earnings are accelerating and markets continue to march forward. Reports on hedge funds and mutual fund flows show that stocks are being sold and bonds are being bought. This is occurring even as corporate earnings are surging, up 14% in the first quarter and likely to grow at a double digit pace in the second quarter as well. We can only think that politics is unsettling investors. This is not the time to be doubling down on President Trump’s perplexing tweets or the incessant media drama by making irrational investment decisions. Instead, it’s advisable to focus on the fundamentals such as today’s report of Durable Goods Orders that leaped to a 3-year high, raising expectations for GDP growth. Please review "Mutual Fund Flows" on page 79 of the Voya Global Perspectives™ Book.

Weekly Commentary & Statistics

Monday, July 24, 2017

The S&P 500 and Nasdaq ticked up while the Dow Jones lost some ground during a week focused on earnings commentary and political controversies.

Monthly Commentary & Outlook

July 2017

The "growth and reflation" trade continues intact due to the positive global economy and the hawkish inflection point in global central bank policy. 2017 markets have been "two steps forward and one step back," a path that rewards those fully invested or those who opportunistically "buy the dips."

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