U.S. equity exchange-traded funds are getting money at the fastest rate since September 2008, underpinning a record rally as stock investors shrug off concern that the Federal Reserve is poised to slow stimulus.
Stock market bulls and bears agree on at least one thing. The highest valuations for makers of household goods since 2008 signal the best is over after the industry rose more than any other group this year.
Keith Hembre dumped bonds and bought stocks when the Federal Reserve announced its plan Nov. 3 to buy $600 billion of Treasuries. The rationale: to benefit from anticipated market gains on days of Fed purchases.
U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a two-month high, as deteriorating federal budget negotiations fueled concern that automatic tax increases and spending cuts will be triggered.