LARGEST US EQUITY & ETF OUTFLOWS SINCE 2015 CHINESE DEVALUATION MARKET CORRECTION
We just got the largest outflow from U.S. equity funds and ETFs since the aftermath of the 2015 yuan deval.
“Outflows from US equity funds and ETFs reached $17.47bn this past week – the highest weekly outflow since September 2015,” BofAML writes citing EPFR. Here’s the visual:
And while profit taking makes a lot of sense here, that’s not how “dumb” money usually behaves.
“This is unusual, as flows typically follow returns, and the outflows in September and August 2015 in fact followed an earlier correction in stock prices,” BofAML goes on to note.