Fund Flows

[winston]

Here's how money moved around the world this week

Stocks: +$4.8 billion
Equity ETFs: +9.8 billion
Equity Mutual Funds: -$5 billion (that's an outflow)
Bonds: +$9.3 billion
Investment Grade Bonds: +$7.9 billion
High Yield Bonds: +$1.5 billion
Treasury Bonds: -$3 billion (an outflow)
Cash: -$77 billion (an outflow)

Source: BoA Global Research

[winston]

Huge $46.4 billion flowed into equities in the latest week

Analysts at BofA noted a huge $46.4 billion flowed into equities in the latest week, while the outflow from cash was the largest in four months.

There were record flows into tech shares and large flows to the consumer sector, healthcare, financials, real estate and value stocks.

BofA chief investment strategist Michael Hartnett said a "sell signal" had been triggered for the first time since February as cash levels declined to 4.0% in the latest GlobalFund Manager Survey.

"Positioning is getting over-extended as policy support and profits are peaking," he said in a note.

"Expectations for higher growth, inflation and lower interest rates have become consensus and investors are positioning for a very rosy scenario of low volatility and high growth."

A CROWDED TRADE Another popular trade has been shorting the U.S. dollar and again positioning was looking over-extended by many measures, giving the currency some respite on Monday.

Source: Reuters

[behappyalways]

Danielle DiMartino Booth

“Big flow to know: inflow to stocks past 5 months of $576 billion exceeds inflow in the prior 12 years of $452 billion.”

https://mobile.twitter.com/DiMartinoBoo ... 4037950464

[winston]

Record Inflows Into US Equities

BofA Global Research on Friday said U.S. equity inflows hit a weekly record of $56.76 billion in the week ending March 17, up sharply from $16.83 billion a week earlier…

Meanwhile, Goldman Sachs estimated that net flows into global equity funds hit a nominal record of $68 billion in the week ended March 17, which when scaled to the level of mutual-fund equity assets was the largest since December 2014.

The rise was largely due to bigger net inflows into the U.S. market, which coincided with the initial distribution of stimulus checks of up to $1,400 for qualified U.S. citizens as part of the $1.9 trillion COVID-19 relief package signed into law by President Joe Biden earlier this month, said analysts at Goldman Sachs, in a Friday note.

Source: Investor Place

[winston]

Asia-Pacific back in favor amid commodities boom

by Andrew Wong

Money market funds pulled in US$68 billion (HK$530 billion) last week, the biggest weekly inflow since April 2020, while gold took in US$2.6 billion, the biggest inflow in 16 weeks, according to EPFR data.

At the same time, money continued to flow into stocks, which took in a total of US$17.9 billion in a week.

So far this year, about US$500 billion has gone into equity funds, more than in the previous 12 years combined.

If analyzed with the direction of capital flows, I believe we will see the following three trends emerge by the end of June.

First, commodity markets will continue to move upwards.

Second, the US dollar may continue to weaken.

Thirdly, though stock markets are not under pressure for a major adjustment as of now, funds may start to flow from Europe and America into Asian markets.

Source: The Standard

https://www.thestandard.com.hk/section- ... ities-boom

[behappyalways]

Despite Turmoil, Stocks Seeing Largest Ever Inflows In 2022
https://www.zerohedge.com/markets/despi ... flows-2022

[winston]

Bond rout pushes cash back in to stocks

by Tom Westbrook

"Big tech, with expanding revenue and ability to control costs, is doing well".

The yen has lost 6% in a week against the Australian dollar.

Source: Reuters

https://www.theedgemarkets.com/article/ ... ack-stocks

[behappyalways]

Foreigners Sold The Most US Stocks On Record In March, China Dumps TSY Holdings To Lowest Since 2010
https://www.zerohedge.com/markets/forei ... owest-2010

[behappyalways]

Despite Crashing Stocks And Cryptos, Retail Investors Just Won't Stop Buying All The Dips
https://www.zerohedge.com/markets/despi ... g-all-dips

[winston]

Money Exits Stock and Bond Funds Amid 2022 Tumble

The S&P 500 has endured a negative return of 20% year to date, and the Bloomberg Aggregate bond index has dropped 11%.

by DAN WEIL

For the week ended June 22, global equity funds suffered an outflow of $16.8 billion, with $17.4 billion coming out of the U.S. That means the rest of the world had inflow. The U.S. outflow was the first in seven weeks.

Global bond funds suffered an outflow of $23.5 billion, and cash holdings increased by $10.8 billion.

The 10-year Treasury yield rose to a high of 3.5% during the week of June 13. While the yield has slid to 3.13% June 23, it remains far above last year’s finish of 1.51%.

The earnings yield for stocks (earnings per share divided by share price) averages about 5.3%.

That puts the yield gap between stocks and Treasury bonds at the lowest level since 2018, Bloomberg reported June 23.

Source: The Street

https://www.thestreet.com/investing/sto ... 2%2BTumble