EM BUY SIGNAL _ SEE BELOW CHART
* Equities: $10.7bn inflows (largest in 8 weeks) (caveat: outsized $7.2bn inflow via SPY)
* Bonds: $1.2bn outflows (4 straight weeks)
* Precious Metals: $0.3bn outflows (first outflows in 4 weeks)
* Money-markets: $29bn outflows (first outflows in 5 weeks)
>>> Equity Flows (Table 2)
* EM: $5.2bn outflows (8 straight weeks)
* US: $8.4bn inflows (all via ETFs)
* Europe: $4.2bn inflows (largest in 6 weeks)
* Japan: $2.3bn inflows (inflows in 26 out of past 28 weeks)
* By sector: healthcare snaps back with $0.9bn inflows; conversely, consumer funds see another $0.8bn outflows
>>> Fixed Income Flows
* $3.0bn outflows from EM debt funds (6 straight weeks)
* $0.9bn outflows from HY bond funds (6 straight weeks)
* $0.5bn outflows from bank loans (5 straight weeks)
* $0.6bn outflows from muni funds (4 straight weeks)
* $2.5bn inflows to govt/tsy funds (9 straight weeks) (longest inflow streak since Sep’11)
* $0.8bn inflows to IG bond funds (first inflows in 4 weeks)
* $0.8bn inflows to MBS funds (largest since Jan’15)
>>> An EM Equity Buy Signal: EM Flow Trading Rule contrarian “buy” signal triggered ; 4-week outflow = $24bn = 2.94% of AUM; last “buy” signal triggered 6/27/13 after which EEM rallied 3.8% in 4 weeks, 13% in 3 months. As noted here (attached), trading rules work except when "financial event” underway, e.g. financial crisis in 2008.