🤑ETFs Flooded with $126.5B Amidst March Surge, Tech Sector Sits on Sidelines🤑

Happy Thursday, Bullseye Traders! 

In the world of finance, March Madness isn't just about buzzer-beaters and bracket-busters—it's about ETFs putting on their own slam dunk show. With a whopping $126.5B in inflows, these funds had a tournament-worthy performance, marking the third-strongest showing since 2021. Looks like investors are dribbling their dollars into new opportunities, even if the tech sector's hoop dreams come with sky-high valuations.

Leading the charge were ETFs tracking industrials, materials, and energy sectors, bringing in $1.4B, $1.3B, and $600M respectively. Meanwhile, the tech sector took a hit with a $600M pullout, while healthcare ETFs saw a sickly $700M in outflows.

But will this ETF (Exceptional Trading Frenzy) frenzy keep the scoreboard lighting up? Well, according to FactSet, sectors like materials, energy, and industrials are facing some tough shots with the largest volume of earnings downgrades. Investors might be banking on analysts missing their mark or simply seeking a safer place to stash their cash. With tech valuations shooting through the roof and mega caps hogging the spotlight, a shift towards more cyclical, value-oriented stocks could be just the buzzer-beating play investors need to stay ahead of the game.

Explore the transformative impact of ETFs on investment strategies and how they can influence your financial prospects.

Mutual funds, the rockstars of the investment world, just blew out 100 candles on their cake. They've been the golden ticket for Main Street to join the Wall Street party, but now it seems they might be trading in their leather jackets for a cozy retirement cardigan.

Calling it quits: Since the ball dropped in 2021, mutual funds have seen an exodus of over $1.3 trillion. It's like the financial world suddenly decided to ghost them in favor of the younger, trendier exchange-traded funds (ETFs). These ETFs are like the cool kids in town, offering lower fees, tax perks, and a price tag you can actually see without a magnifying glass.

The ETF empire strikes back: ETF assets have ballooned to $8 trillion since 2014, with iShares leading the charge. They've snagged 13% of US equity assets and 2.8% of US fixed-income assets. John Rekenthaler, the OG mutual fund tracker, is scratching his head, wondering what's left in the playbook for mutual funds. Retirement seems inevitable.

Passive aggression

Sure, ETFs are all the rage, but they come with their own baggage. Picture this: fewer companies, more investors. It's like trying to find a quiet spot in Times Square. Then there's the sneaky move of front-running index changes, where institutional investors play a game of musical chairs with stocks like Tesla and Super Micro. And let's not forget the limited menu of options, especially when it comes to small and mid-cap stocks. Morningstar's got a point: sometimes being actively passive can lead to some serious yawns.

Snooze-fest or stable sleep? If mutual funds were your bedtime story, ETFs might be the lullaby playlist. But beware, because "terribly boring" could be the new black in the market. Sure, boring might mean lower returns and more rollercoaster rides, but it also spells stability. And in the wild world of finance, stability is the new sexy. So, here's to Boring Money with The Average Joe. Cheers to retirement, and mutual funds. You've earned your nap.

SHAKERS AND MOVERS

Nvidia, GoodRx, & Delta Airlines: A Symphony of Market Moves

DECK (-6%) Truist taps out on athletic shoe company Deckers Outdoor, citing a waning appetite for their kicks (Barron’s)

NVDA (+2%) Nvidia takes flight, attempting to escape correction territory, while its comrades in the Magnificent Seven stumble (IBD)

GDRX (+4%) GoodRx gets a prescription for success from KeyBank, as app downloads and usage surge (BI)

BABA (+2%) Jack Ma emerges from the shadows with an Alibaba-alicous restructuring plan (Reuters)

DAL (-2%) Delta Airlines faces turbulence as first-quarter profits barely take off, plus, a Boeing bias in its fleet (AP)

STREET SCOOPS: The Buzz Around Town

CNBC: Fed officials seem to believe inflation's in no hurry to take a chill pill.

CNBC: Brace yourselves: inflation's playing hard to get, soaring 3.5% in March, shattering expectations like a bull in a china shop.

QZ: Apple's shaking things up, making iPhones in India worth a whopping $14 billion last fiscal year, giving China a run for its money.

BI: Boeing's got a whistle that won't quit—now they're blowing it on safety lapses with the 777 and 787 widebodies.

CNBC: General Motors' Cruise self-driving cars are hitting the road again after a fender bender with a pedestrian—a comeback story that's more "Terminator" than "I, Robot."

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