20/05/2024
Goldman Sachs managing director Scott Rubner said there will be inflows into some of the largest U.S. stock exchange-traded funds next week, with stocks hitting record highs, sparking so-called "FOMU" among investors. ".
The Dow Jones Industrial Average ( DJI ) topped 40,000 for the first time this week and closed above it, while the S&P ( SP500 ) ( VOO ) and Nasdaq Composite ( COMP:IND ) also posted record closings. Stocks rose as inflation slowed in April, refreshing expectations for the Federal Reserve to cut interest rates this year.
"I entered the conversation on FOMU with concerns about significant underperformance and the 'US 60/40 Portfolio' entering a positive trading window this week," Rubner said in a note on Friday. He noted, # DOW40K is a popular hashtag on social media.
Watch ETF giants SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and Invesco QQQ Trust next week following record moves as the largest equity owners — U.S. households — beat short sellers, Rubner said ETF ( QQQ ) inflows are on Wall Street.
"Given the well-publicized 'all clear' headlines here, it's possible that a steady stream of retail traders will be adding 'more 60/40 portfolios' this weekend after checking trading statements," Rubner said.
