There’s been no shortage of discussion this year about flows into US equities.
Over the past several weeks, more than a few commentators have suggested that the flood of Johnny–come–lately retail money into stocks may be proof that they do in fact “ring bells at the top.”
Of course these flows have been catalyzed and perpetuated by the “Trump trade” meme. Headlines advertising the “Trump rally” and Dow 20,000 have been plastered across every newspaper in the country, fueling retail demand and ensuring that as is almost always the case, “mom and pop” are buying when multiples are stretched and are thus almost sure to be underwater in the medium- to near-term as the market finally corrects.
Well, for those interested, below find a few charts from Deutsche Bank which, to borrow from Maurice Sendak, show you “where the wild flows are”…
Via Deutsche Bank
As shown below, US equity funds accumulated $55 billion of inflows over the past twelve months ( $100 billion since November alone)…
Last week, DM equity funds (+) with US & Japan (+) vs. Europe (-): DM equity funds rose to their highest level in the past 13 weeks (+0.2%, MFs: -0.1%, ETFs: +0.7%) as significant ETF inflows outweighed MF redemptions…
So as noted, those weekly flows were before the Fed.
It’ll be interesting to see what the lagged numbers look like this week.Subscribe to NFTRH Premium for your 50-70 page weekly report (don't worry, lots of graphical content!), interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).