We can finally start to say that average investors are getting optimistic about stocks again -- which could be good news from a short-term perspective, but starts to tell us that this rally has definitely entered a new, more mature stage.
Using data from National Stock Exchange, Dave Nadig over at Index Universe shows how while $19.4 billion fled the SPDR S&P500 ETF in 2009, a massive $11.6 billion flowed back into the ETF during December alone. That's a mammoth amount. Investors are clearly warming to U.S. stocks again, finally:
Index Universe: Eleven billion dollars in net SPY creations in 20-odd trading days? That’s an astounding figure to me, especially given the consistently negative U.S. equity sentiment throughout 2009. Eleven billion dollars is more than all but one ETF pulled in, in 2009. And that one ETF isn’t even on the list for December: the SPDR Gold Trust (NYSEArca: GLD). GLD pulled in nearly $14 billion over the course of 2009, but had net creations of just $128 million in December, as gold, for all intents and purposes, topped out for the time being. And while SPY got most of the love, the strong flows into IWM, XLU, DIA and QQQQ suggest that core longs are indeed back into U.S. equities in a big way.
Still, for the full year, Mr Nadig shows how fund flows overwhelmingly went into fixed income, commodities, and international stocks, (shown below) as we've shown in the past using a separate, confirming data set.
Read Investors Rushed Back Into U.S. Equity ETFs In December
Disclosure: No Positions