--> Flight-to-safety: largest equity outflows in 15 weeks ($8.3bn); 7 straight weeks of inflows to Govt/Tsy funds (longest inflow streak since Nov’12); 3 straight weeks of inflows to money-market funds
--> EM exodus: largest weekly outflows from EM debt funds since Jan’14 ($2.5bn) (Chart 1);
7 straight weeks of outflows from EM equity funds (totaling $26bn)
--> Our Bull & Bear Index: falls deeper into “fear” territory… now at 1.4…bearish positioning remains one of the only reasons to be bullish risk assets right now (see below)
* Equities: $8.3bn outflows (largest outflows in 15 weeks) (first outflows in 7 weeks)
* Bonds: $1.2bn outflows (2 straight weeks)
* Money-markets: $8.2bn inflows (3 straight weeks = already the longest inflow streak since Nov’14)
* Precious Metals: ekes out small inflows ($18mn) for second straight week
*** Equity Flows
* EM: $6.0bn outflows (largest in 5w) (6w outflows = $26bn)
* US: $6.6bn outflows ($120bn outflows YTD)
* Europe: $2.8bn inflows (14 straight weeks)
* Japan: $0.9bn inflows (inflows in 24 out of past 26 weeks)
*** Fixed Income Flows
* $2.5bn outflows from EM debt funds (largest since Jan’14); bulk of outflows via EM local currency funds
* $2.5bn inflows to govt/tsy funds (7 straight weeks)
* $0.8bn outflows from HY bond funds (4 straight weeks)
* 4 straight weeks of outflows from TIPS ($0.3bn)
* Small $38mn outflows from IG bond funds