One week ago we showed that in a surprising twist, even as the broader market has remains stable and trading rangebound between 2040 and 2080 over the past month, actual equity outflows had accelerated and one week ago EPFR reporter another $7.4bn in equity fund outflows (the 5th straight week) driven by $4.8bn in mutual fund outflows and $2.7bn ETF outflows, leading to a $44bn equity exodus past 5 weeks, which as Michael Hartnett points out is the “largest redemption period since Aug’11.”
Overnight we got the latest fund update and not surprisingly, the outflows from equities have continued.
BofA summarizes the latest flow as a “reversal in Shanghai Accord flows” noting the “1st outflows from EM debt funds in 13 weeks; largest Japan inflows in 10 weeks; and 1st outflows from TIPS funds in 14 weeks; 1st” and adds that EPFR reports another week of risk-off flows: $5.8bn equity redemptions vs $2.8bn bond inflows & $1.8bn precious metals inflows (= largest in 11 weeks).
A breakdown of asset class flows:
Focusing just on equities:
Finally, some observations on how BofA’s private clients are positioned: everyone love low-vol and quality; everyone hates biotechs and “buybacks.”
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