AdvisorShares: Signs Pointing to Merry Holiday Season

Minyi Chen, CFA, Chief Operating Officer of TrimTabs Investment Research and Portfolio Manager of AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) shares recent fund flow trends.

Demand Indicators Point to Jolly Holiday Season for U.S. Equity Investors. ETF Flows Turn More Encouraging for Short Term.

Our demand indicators suggest the stock market party can keep right on rolling through the holiday season. Reflecting the impact of ongoing Federal Reserve stimulus, our demand indicators remain very favorable for the intermediate term and have turned more favorable for the short term. Any market dips should be treated as buying opportunities.

ETF flows have turned more auspicious for stocks in the short run. Investors in leveraged ETFs, who tend to be poor market timers, turned more pessimistic. They pulled 0.6% of assets out of leveraged long ETFs in the past week and added 0.4% of assets to leveraged short ETFs.

11.22.13 pic 1
11.22.13 pic 1

Another encouraging sign is that U.S. equity ETF flows have subsided. These ETFs issued $1.5 billion (0.2% of assets) in the past week, and the trailing one-month inflow has fallen to a modest $4.9 billion (0.5% of assets).

11.22.13 pic 2
11.22.13 pic 2