Just six weeks ago investors were on the verg
Post# of 63831
Posted On: 10/16/2015 5:36:52 PM
Just six weeks ago investors were on the verge of a full-blown panic. Fears about China's economic turbulence and vague Federal Reserve policy gripped the financial markets.
Money is pouring in to Wall Street
The deep concern caused the Dow to plummet by an unprecedented 1,000 points on August 24 before sending the market into correction mode.
But fear is quickly fading on Wall Street. The Dow is at a two-month high and the S&P 500 has clawed its way back above the 2,000 threshold.
Furthermore, for the first time since early July investors have poured money back into both stock and bond funds globally, according to Bank of America Merrill Lynch research on weekly fund flow data.
It "signals a turn in risk-off sentiment," Michael Hartnett, chief investment strategist at BofA Merrill Lynch, wrote in the report.
The markets are betting "low" growth, earnings and interest rates are "here to stay, but no recession," he wrote.
That's why CNNMoney's Fear & Greed Index is now sitting comfortably in "neutral" territory. It's a huge improvement from just a month ago when it was flashing "extreme fear."
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