* Strongest weekly inflows to equities funds ($11.4bn) since Feb’14 versus weakest inflows to bond funds ($1.6bn) in 3 months. Since early February stocks are up 7.4% (total return), which when combined with this week’s inflows may argue for a temporary pause in equities’ upward move, especially as events in Iraq threaten higher oil prices
* Bull & Bear Index shows that investor risk appetite remains in a steady uptrend, rising to 7.4 from 4.1 just 3 months ago . Risk assets could have a final surge higher before a more sinister correction in the fall
* Asset class flows
- Equities: $11.4bn inflows ($9.1bn into ETF’s) (Table 1)
- Bonds: $1.6bn inflows (smallest inflows in 3 months)
- Precious metals: $0.3bn outflows (2nd straight week of outflows)
* Equity flows
- EM: $2.3bn inflows (largest in 9 weeks) (Table 2); third straight week of inflows to
- Brazil equity funds ahead of World Cup
- Europe: $2.6bn inflows (largest in 16 weeks)
- US: $5.1bn inflows (all via ETF’s)
- Japan: $0.9bn outflows (largest in 13 weeks)
- By sector, outflows from materials and utilities; inflows to energy and real estate funds
* FICC flows
- Largest weekly redemptions ($1.3bn) from floating-rate debt since Aug’11
- $0.8bn inflows to EM debt funds (11 straight weeks) (Chart 2)
- $2.1bn inflows to IG bond funds (25 straight weeks)
- $0.2bn inflows to HY bond funds (smallest in 8 weeks)
- 8 straight weeks of inflows to both MBS and Munis