Key insights
- The S&P 500 continues to reach new all-time highs despite macroeconomic and geopolitical concerns. Strong inflows into US equity funds, coupled with decreasing perceptions of overvaluation among fund managers, suggest continued bullish sentiment. Trump's comments about a potential deal with Iran further fueled the rally, indicating a positive outlook for US equities in the short term.
No matter what happens, the US market just keeps pushing higher.The S&P 500 is printing new all time highs even with war in the Middle East and signs that the US economy is slowing down.Since the start of the 2020s, the S&P has already hit fresh record highs 204 times. And after Trump said a deal between Iran and the US was possible, the index posted its strongest 10 day run since the Covid rebound in 2020.
Money is still flowing hard into Wall Street too. Over the last month, more than $111 billion went into US equity funds, while European and Asian stock funds saw net outflows.At the same time, a Bank of America survey showed that the share of fund managers who think US stocks are overvalued is now at its lowest level since 2019.
So even with wars, slowdown fears, and nonstop macro noise, money still keeps choosing the US market?