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JPMorgan Sees $200 Billion Near-Term Risk For Stocks, But Kolanovic Still Broadly Bullish
If you're looking for an excuse to get tactically bearish, you might point to quarterly rebalancing flows.
Equities have outperformed fixed income during the third quarter by a wide margin (figure below), which points to a big adjustment for fixed weight investors.
JPMorgan's Nikolaos Panigirtzoglou pegs the outflow for equities at some $200 billion.
Of course, you needn't lean solely on this if what you're after is confirmation bias for any cautious views you may be harboring around equiti
It will be interesting to see if the re-balance effect does kick in this quarter what part(s) of the fixed income complex will benefit. It certainly will not be shorter term/low duration.