>> Talking Points
* Bullish on Wall Street: solid inflows to both equities ($7.0bn) and bond funds ($7.5bn); YTD bond inflows ($199bn) outpacing equity ($116bn)
* Bullish on Quality: bond inflows again totally dominated by inflows to Investment Grade ($7.1bn) as investors go “up in quality”
* Bearish on Inflation: another week of outflows for TIPs, bank loan & Gold funds
* Bullish on Growth: equity inflows again dominated by US ETFs (& health care the sector winner) as investors rotate to “growth” markets & sectors
* Bearish on BoJ & ECB: cutting against price action, Japan funds record largest outflows since May’10 , while QE-failure writ-large as Europe funds see 10th outflow past 11 weeks
>>> Asset Class Flows
* Equities: $7.0bn inflows (note stark divergence between $12bn ETF inflows and $5bn out of mutual funds)
* Bonds: $7.5bn inflows (8 straight weeks) (Table 1)
* Precious metals: $0.7bn outflows (outflows in 11 out of past 12 weeks)
>>> Equity Flows
* Europe: $2.2bn outflows (outflows in 10 out of past 11 weeks)
* Japan: big $3.8bn outflows (largest since May’10) (Table 2)
* US: $12.0bn inflows (all via ETF’s – SPY, IVV, MDY)
* EM: modest $0.3bn inflows
>>> Fixed Income Flows
* 47 straight weeks of inflows to IG bond funds ($7.1bn) (Chart 2)
* 4 straight weeks of inflows to HY bond funds ($0.9bn)
* 3 straight weeks of inflows to EM debt funds ($0.3bn)
* 18 straight weeks of outflows from bank loan funds ($0.4bn)
* 10 straight weeks of outflows from TIPS ($0.2bn)
* $1.6bn outflows from govt/tsy funds (largest in 8 weeks)