* Cash is King: investors put $17bn into money-market funds, $0.4bn into bond funds & withdraw $3.3bn from equity funds…note cash outperforming stocks and bonds this year, 1st time since 1990
* QE hopes spring eternal: inflows to both Europe & Japan equity funds; this week’s equity redemptions concentrated in US funds (in particular SPY)
* BofAML’s Bull & Bear Index (cross-asset flows, positioning, technical) now most bearish
level since Oct’11
- Equities: $3.3bn outflows ($2.9bn ETF outflows and $0.4bn mutual fund outflows)
- Bonds: $0.4bn inflows, ends 6 straight weeks of outflows
- Money-markets: $17bn inflows (largest in 4 weeks)
- Precious Metals: $0.1bn outflows (4 straight weeks of modest outflows)
>>> Equity Flows
- EM: tiny $95mn outflows = smallest outflows in 11 weeks
- Europe: $2.9bn inflows (inflows in 18 out of past 19 weeks)
- Japan: $0.9bn inflows (inflows in 29 out of past 31 weeks)
- US: $7.3bn outflows (note: SPY alone accounts for $7.4bn outflows)
- REITs the winning sector this week ($0.6bn inflows); Healthcare one of the only sectors to record outflows ($0.3bn)
>>> Fixed Income Flows
- $1.3bn outflows from IG bond funds (largest in 4 weeks)
- $0.2bn outflows from HY bond funds (outflows in 8 out of past 9 weeks)
- Govt/tsy funds see 12th straight week of inflows ($0.9bn)
- Small $0.1bn outflows from EM debt funds (9 straight weeks)
- Largest weekly inflows to muni funds since Jan’15 ($1.1bn)