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Wellington Daily News - Wellington, KS
  • Investors Pulled Billions Out Of US Stocks This Week

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  • Business Insider
    In the week ended November 6, investors pulled $1.8 billion out of global equity funds.
    U.S. equity funds were hit the hardest, recording a whopping $7.5 billion in redemptions — and the majority of those outflows were from ETFs.
    BofA Merrill Lynch chief investment strategist Michael Hartnett describes it as a "classic risk-off week," pointing to "outflows from equities, cyclicals, HY bonds & EM debt vs flight to govie, IG bonds & money-markets."
    Below is a complete breakdown of this week's fund flows, via Hartnett.
    Asset Class Flows
    Equities: $1.8bn outflows (note $3.0bn ETF outflows vs $1.3bn LO inflows) (Table 1)
    Bonds: $1.7bn inflows (largest inflows in 6 weeks)
    Precious metals: $0.2 outflows (8 straight weeks)
    MMF: third straight week of inflows post debt-ceiling resolution
    Equity Flows
    Europe: 19 straight weeks of inflows ($2.8bn) (Table 2)
    Japan: 9 straight weeks of inflows
    US: $7.5bn outflows (majority out of ETF’s – SPY, IWM, UWM)
    EM: $1.0bn outflows (largest in 5 weeks)
    By sector, chunky outflows from cyclicals (Tech & Financials); in fact, largest weekly outflows from Tech funds ($1.2bn) since Sep’08
    Fixed Income Flows
    Largest inflows to IG bond funds since May’13 ($1.5bn)
    72 straight weeks of inflows to floating-rate debt
    First outflows from HY bond funds in 9 weeks (Table 3)
    First inflows to govt/tsy funds in 9 weeks ($0.9bn)
    6 straight weeks of outflows from EM debt funds
    30 straight weeks of outflows from TIPS
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