December Equity Funds See Average $70B Inflows

U.S. equity funds usually receive their largest monthly deposits in December. Over the past ten years excluding election years, those deposits averaged $70 billion. This regular December pattern strengthens the belief that the market will rise again at the end of this year.

⬤ December has brought the largest monthly inflow into U.S. equity funds for ten straight non election years averaging $70 billion. No other month comes close.

⬤ December's intake exceeds the combined October-November total by more than two fold. Retail buyers have already poured $160 billion into equity ETFs during September besides October, the strongest two month span since the post election rush of late 2024, JPMorgan records show.

If the pattern repeats, December will post one of the largest monthly inflows ever recorded.

⬤ This late year surge matters because it adds immediate liquidity and short-term upward thrust to stocks. Heavy December cash lifts prices and feeds the so called Santa rally. Present flows show investors expect a strong finish.

⬤ Whether history repeats is unknown - yet the ingredients are visible - retail money already active plus a long standing seasonal tail wind. Markets now face what may become their most sizable December inflow on record.

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Eseandre Mordi E-mail

Eseandre is a blockchain lover from Nigeria, who also likes music and protecting women's rights.