--> Another $6bn into Equities (= $235bn YTD); $3bn into bonds; outflows from Gold.
*On course for biggest Equity inflows since 2004…but investor sentiment is not frothy enough to make correction call: our Bull & Bear Index is at 6.4, i.e. below 8 (Chart 1); our Global Flow Trading Rule is in neutral territory & would require an improbable $16bn of long-only equity inflows in next 2 weeks to trigger “sell” signal
*Inflows to Europe equity funds exceeding inflows to US equity funds as % AUM by widest margin since Apr’09…pain trade into year-end remains US over Europe
Asset Class Flows
* Equities: $6.0bn inflows ($3.1bn inflows via ETF’s) (Table 1) * Bonds: $2.9bn inflows * Precious metals: 10 straight weeks of outflows
Equity Flows
* EM: 4 straight weeks of outflows (albeit tiny $0.1bn) (Table 2) * Europe: 21 straight weeks of inflows ($1.9bn) * Japan: first outflows in 11 weeks * US: $1.8bn inflows, but note divergence between outflows from large-cap and inflows to SMID-cap
Fixed Income Flows
* Largest weekly inflows to IG bond funds since May’13 ($3.0bn) (but dominated by inflows to one fund) * $1.6bn inflows to HY bond funds (inflows in 10 out of past 11 weeks) * 8 straight weeks of outflows from EM debt funds ($1.4bn) (outflows in 25 out of past 26 weeks) * 32 straight weeks of outflows from TIPS * 27 straight weeks of outflows from MBS * 74 straight weeks of inflows to floating-rate debt