Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management.
Welcome back, David.
David Nelson:
Excited to be here. Thank you.
Brandy Auterson-Hurst:
David, when looking at the overall economy, what in particular stands out to you right now?
David Nelson:
Well, I think the equity flows that we’re seeing as far as relating to what are called exchange traded funds, or ETFs, and it’s a basket of investments that basically trade like a stock, and the money flows that we’re seeing basically are making their way from mutual funds into ETFs. Brought along a chart today that I think will give people a nice visual as far as what we’re talking about. Basically, what this is showing here is that the flows have really picked up a speed as far as over the last several years. Specifically, the chart is looking at 13-week average flows that are going into ETFs, and it’s going back to the year 2016. What we see the last three years in particular, and I think this is really important as far as to point out to people, is that the flows have just absolutely gone off the charts. They’re averaging about 350 billion a year, but this year alone, we’re on track for about 500 billion a year, which is staggering sum of money as far as going into these particular type of investments.
Brandy Auterson-Hurst:
Okay. So what sort of implications does this have for investors?
David Nelson:
Well, I think most people overlook the importance of flows relating to how much money is going in. When people really get it, as far as that the stock market is just a big auction, when you have more buyers than sellers and the money is flooding in and people are wanting to buy and there’s few sellers, the prices go up. And so if I’m an investor, that’s certainly the climate, the type of environment that I want to be investing in. So these are pretty encouraging numbers that we’re seeing.
Brandy Auterson-Hurst:
As always, David, thank you for joining us.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.