Billions Flee Stock Funds Amid ‘Appalling’ Risk Sentiment
Risk sentiment is "appalling," BofA's Michael Hartnett declared. Or despaired.
Investors ditched stocks over the latest weekly reporting period, according to EPFR data summarized by Hartnett. Nearly $15 billion fled global equity funds on the heels of a three-week losing streak, the worst since June (figure below).
On an equal-weighted basis, Hartnett noted, global shares are back on the lows.
Yields, meanwhile, are at or near new cycle highs. The US economy hasn't succumbed to recession ye
Flow is one variable to follow. But it’s a good one. Can this be an initial sign of the coming capitulation?
I hope so. And I hope there will be other signs to come.