Bernstein Quants Say Economy, Earnings to Stimulate Equity Flows
Improving outlook for economy and corporate earnings growth, as well as uptick in inflation expectations, to bolster case for inflows into equity funds, write Bernstein quant strategists led by Inigo Fraser Jenkins.
- Slowdown in purchases of both equity and bond funds in recent weeks shouldn’t be concerning to equity investors
- Total flows to equity funds remain positive and recent slowdown could be nothing more than consolidation after strong 1Q and 2Q buying
- Week ending July 12, equity funds attracted $4.9 billion, compared with $4.4 billion to bond funds: Bernstein