July was a great month for stocks with the Dow Industrials up 4%, the S&P 500 gained 4.9%, and the Nasdaq Composite was up 6.6%. The small-cap Russell 2000 was the leader, gaining 6.9%.
In mid-July, flows into stock funds hit a six-month high at $19.7 billion but there still seems to be some debate as to whether the long-awaited rotation from bonds to stocks is underway. The data is mixed as the record flows into stock funds were accompanied by $4 billion flowing into high-yield junk bond funds.
The public participation in stocks is still at historically low levels, and many are wondering after July’s stellar performance, if August will be as good?
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