Traders work on the floor of the New York Stock Exchange.
The latest wave of market enthusiasm has brought with it a stunning rush of money, in which more of investors’ cash has gone to stock-based funds in the last five months than the previous 12 years combined.
That statistic, from Bank of America, reflects a period in which the Dow Jones Industrial Average has risen more than 26%.
At the same time, the market has undergone some wild trends that included a massive influx to meme stocks such as GameStop and AMC Entertainment Holdings. Trading volume rose 40% in the first quarter from the previous three months, with investors snapping up sectors that performed poorly last year amid hopes for a pronounced economic rebound from the Covid-induced slide in 2020.
Amid the frenzy, some $569 billion has gone to global equity funds since November, compared with $452 billion in the previous 12 years that go back to the beginning of the…