Will Risk Takers be Rewarded this Year?

The following quote was carried on Reuters this past Saturday January 12rh.

“(Reuters) – The biggest weekly inflow into U.S.-based equities mutual funds in more than 11 years could be a sign that stocks are coming back into favor for a broad swath of investors after lawmakers avoided the fiscal cliff, some top money managers said.

“We are at an inflection point where, especially in the U.S., you’ll start to see net inflows into equities,” said Margaret Patel, senior portfolio manager at Wells Capital Management, which oversees $331 billion in assets. “The risk-taker will be rewarded this year.”In the week ended Wednesday, investors in U.S.-based funds poured $7.53 billion into stock mutual funds while exchange-traded funds investing in equities gained $10.78 billion in new cash, according to data from Thomson Reuters‘ Lipper service.The inflow into U.S. stock mutual funds was the biggest since May 2001, and the $18.32 billion aggregate injection of money into equities funds was the biggest since mid-2008.

Separately, EPFR estimated that net inflows into global equity funds, including ETFs, in the same week hit $22.2 billion – the highest since September 2007 and the second highest since comparable data began in 1996.”

As we at eureka-perspective see it, these big inflows were much closer to market highs rather than at market lows, the level where value can be obtained.  A chart of this info is available to subscribers, see below.

A general announcement here:  As we approach our 5th anniversary of the website on January 22nd we are looking to add more features that will bring more readers to our current following of hedge fund managers, agriculture producers, and political followers.  The population group that may have the greatest need for real investment information going forward are the 30 to 50 age group who will be putting together their own pension assets as government activity recedes.

As such, in the next three months we plan to add a subscriber section to the website called “The Numbers”.  Until the section is added we will be sending daily emails of the “The Numbers” to all readers who enroll by sending us their email address.