One Week After Buying The Dip, Investors Run Screaming From US Stocks In 3rd Biggest Outflow Ever
One week on from the biggest inflow into equities since March of 2018, investors fled stocks in droves amid political concerns and fading stimulus prospects in the US.
Specifically, a net $22.8 billion left global equity funds, the most since March, with the outflows concentrated in US shares.
The $25.8 billion outflow from US stocks in the week through September 23 was the third largest on record, BofA's Michael Hartnett notes. Japan saw a second week of inflows and emerging market shares too
…“only catalyst for higher QE in Q4 is weaker credit and/or a contested election, which would force the Fed to flood markets with liquidity in early November”.
To the Fed’s hammer, every crisis looks like a nail.
The Fed know it is a screw and not a nail. But the folks with the screwdrivers (Congress) can’t agree what screwdriver to use or whether they should do anything at all. In the meantime the Fed has to use the hammer on the screw – it is the only tool they have…
The “dips to buy” are getting deeper. It used to be 5% drops. It’s been more like 15% in the past couple of years.