Investor sentiment

Q: We've been through some pretty big ups and downs in the last few years. What is the current feeling with investors?

A: Some Investors appear to have forgotten the downs. According to morningstar US equity Mutual funds investors are returning in full force. Long-term flows roared back in January with nearly $30 billion in estimated inflows, reversing December's $10.6 billion outflow. This is the biggest haul for open-end U.S. stock funds since February 2006 and the best January since 2004. It also reverses eight consecutive months of outflows. Conversely, nearly $76 billion fled money market funds, the majority of which left taxable funds. This was the largest money market exodus since April 2010. It appears investors are favouring equities at this point.