A Week of Records Closes at Another

A winning week for equity investors closed on a high note with the DJIA and the S&P 500 topping record highs again as investors continued to lean into equities, emboldened by strong earnings and economic reports. The S&P 500 has gained 1.3% this week, its fourth straight positive week. The Dow has climbed 1%, while the Nasdaq closed nearly 1% higher.

Money keeps flowing into equities, with $25.6 billion going into stocks, and $47.3 billion coming out of cash — the most weekly outflows in four months. In the past five months, $602 billion has flowed into the global equity market. That's more money that went into the global stock market than the $452 billion that went in the prior 12 years. The bond market finally woke up with $17.9 billion going into fixed income securities, most of which went into corporate bonds. 

There is a lot of money sloshing around in capital markets right now, and a lot of investors are diving headlong into cryptocurrencies. Dogecoin, that quasi-joke of a crypto token named after the Shiba Inu dog and hyped by Elon Musk, among others, soared 400% this week. It's up more than 8,000% this year, and you can't buy anything with it except some souvenirs and snacks at a Dallas Mavericks NBA game. Dogecoin has gone parabolic, but so have more than a handful of altcoins this year as investors seem willing to bet on anything.