S&P 500, Dow Rout Allows Bold Investors to Pick up Cheap Shares

Talking Points:

  • Aggregated fund flows reveal a weekly net-inflow of $2.2 billion
  • Despite the continued sell-off, Wednesday saw the largest single day inflow in a month
  • Poor earnings weighed on equity sentiment and the QQQ ETF

What began as a few days of sustained losses for the SP 500 now borders a full-scale correction with the index down just under 10% from its peak. With its close at 2,658 on Friday, the SP 500 forfeited all year-to-date gains. Despite the continued sell-off, exchange traded funds that track the main indices realized net-inflows for the week.

SP 500 Hourly Price Chart October 2018

SP500 price chart equity drop

In total, the three ETFs saw $2.2 billion in inflows. While rather insignificant relative to their cumulative market capitalizations, the flows are noteworthy given the market’s climate. This week saw four of the five trading days close red with substantial losses on Wednesday and Friday. For the month of October, Thursday marked just the fourth green close. With that in mind, Thursday’s inflow of $4.1 billion is evidence that at least some

Article source: https://www.dailyfx.com/forex/fundamental/article/special_report/2018/10/26/SP-500-Dow-Rout-Allows-Bold-Investors-to-Pick-up-Cheap-Shares.html