In the last three months, net inflows into US ETFs have exceeded $400 billion. Much of the ETF funds come from 401k, pensions, advisory models, target date funds, and rebalancing. These funds do not consider "expensive" or "cheap," but rather buy when they feel it is the right time, judging that the trend has already begun.

Although this money has entered US stock ETFs, it does not mean that the average is buying the entire market; ultimately, it will flow back more to the index-weighted largest assets, especially large-cap and tech-weighted assets. This generally indicates that these funds see a soft landing for the US economy, expectations of interest rate cuts, narratives of AI productivity, cash migrating from short-term bonds, and overseas funds chasing dollar assets.

In simple terms, while many still believe we are in a bear market, over $400 billion has already started to buy the dip. They are willing to believe that the trend will be better in 2026.