* Weekly flows: run-up to ECB was "risk-off" with outflows from equities ($4.9bn), but strong inflows to both bond funds ($5.6bn) & precious metals ($2.0bn)
* Front-running of ECB: biggest European equity inflows since Jun’14 ($2.3bn) as buying momentum accelerates from deep Oct’14 lows (Chart 1)
* Largest precious metals inflows since Aug’11 ($2.0bn – Chart 2): Gold the sole Jan conviction trade following brutal break of Swiss franc-euro peg
* Buyers’ strike in beta-assets: EM equity, EM debt & HY bonds remain out-offavor, combining for $50bn of redemptions over the past 10 weeks
* Bond Bulls acc to flows: 57th straight weeks of inflows to IG bond funds…the world's crowded trade (Chart 3)
* Trading Rules worked: risk has rallied since our Bull & Bear index flashed "buy" on Jan 7th, but mostly stocks: ACWI up 307bp; Europe up 926bps; EM up 601bps; Japan up 218bps, US up 187bps
>>> Asset Class Flows
* Equities: $4.9bn outflows (all outflows via mutual funds)
* Bonds: $5.6bn inflows (3 straight weeks) (Table 1)
* Precious metals: $2.0bn inflows (largest weekly inflows since Aug’11)
>>> Equity Flows
* Europe: strongest inflows ($2.3bn) since Jun’14; momentum strong
* EM: 10 straight weeks of redemptions ($3.1bn) (Table 2)
* US: $5.0bn outflows (outflows from both ETF’s and mutual funds)
* Japan: chunky $1.2bn inflows
>>> Fixed Income Flows
* 57 straight weeks of inflows to IG bond funds ($5.4bn)
* HY bond funds see $0.9bn outflows (outflows in 7 out of past 8 weeks)
* 7 straight weeks of outflows from EM debt funds ($1.2bn)
* 28 straight weeks of outflows from bank loan funds ($0.8bn) (Chart 4)
* 18 straight weeks of inflows to muni funds ($0.8bn)
* 14 straight weeks of inflows to MBS funds ($0.6bn)
* $1.9bn inflows to govt/tsy funds