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US innovation Q1? $5bn move out of US equity to BRICs stock funds

posted Apr 27, 2012, 1:30 AM by Solar Life   [ updated Apr 27, 2012, 1:46 AM ]
Q1-2012 US Investors transferred $5bn 
from US equity funds 
to Emerging markets stock funds

April 27, 2012

Dumb money still flocks to emerging markets

Commentary: Investors pull out of U.S. even as it outperforms

Even in the first two months of 2012,
U.S. investors yanked $5.3 billion out of U.S. equity funds and
funneled $5.2 billion into emerging-market stock funds.

So, while U.S. stocks were quietly recovering and outperforming, investors dumped them for an asset class that has lagged the entire time.

U.S. pension funds
 We still see pent-up demand from U.S. pension funds to increase allocation to emerging markets.” 

In fact, U.S. mutual fund investors pulled an astonishing $464.9 billion out of mutual funds focusing on U.S. equities from 2007 to 2011, according to the Investment Company Institute. They stashed almost $800 billion into bond funds during that period, of course, but they also poured $73 billion into emerging-market equity funds
Nobody ever got fired for buying Petrobras, right?

But BRICs have als problems...MSCI BRIC Index Fund

Because everything isn’t rosy for emerging markets, particularly the BRICs that stole all the headlines just a few years ago. The iShares MSCI BRIC Index BKF +0.35%  ETF trades below its 50- and 200-day moving averages, an ominous sign.

iShares MSCI BRIC Index Fund  NAR: BKF

Related history 2011

April 8, 2011

7 investments that show the BRIC is back

Commentary: Foreign investments to consider now

BRICS prepares 

world banking revolution