The Investment House Commentary

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Sunday, 28 October 2012

Equity markets were broadly higher this quarter, with the S&P up 6.35%, bringing its year to date gains to +16.44%. Bonds were up slightly (interest rates lower), and commodity prices surged 11.39%. Neither the European Financial Crisis, nor the looming Fiscal Cliff was sufficient to derail the momentum. This is particularly impressive given the continued outflow of mutual fund dollars from equities: Morningstar reports that investors sank $29.9 billion into taxable bond funds in September alone, while simultaneously withdrawing $16.8 billion from US stock funds, representing the 17th consecutive month of mutual fund outflows from US stocks. In the year to date, US stock funds have lost $82.6 billion, while the year to date inflows to taxable and municipal bond funds were $194.1 Billion and $43.1 Billion, respectively.  To read the full report: The Investment House Quarterly 3Q2012