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ETFs and Buybacks Fuel 2019 Rally as Investors Avoid Single Stocks

ETFs and Buybacks Fuel 2019 Rally as Investors Avoid Single Stocks

The 2019 stock rally is being fueled by two largely overlooked catalysts: a 58% increase in stock buybacks and a 5-fold rise of inflows into ETFs in the last week alone, per data from Bank of America Merrill Lynch. Strikingly, this is happening as retail and institutional investors alike have been net sellers of shares, illustrated by $1.48 billion in single-stock sales in the week ending March 1, according to a detailed story in CNBC . This is a source of concern for at least one stock market strategist.