It’s not all sunshine and roses market bulls.
Despite stocks trying to stage a recover this week after a two week slumber on trade war fears, the market’s internals still look bearish. U.S. stock funds and ETFs had the second largest outflow this year of $29.3 billion for the week-ended June 27, according to Bank of America Merrill Lynch. The outflow was slightly below the record $29.5 billion seen during the February market correction and up from a $7.4 billion outflow a week earlier.
Where the money went speaks volumes about Wall Street’s true mood right now.
BofA says $22.6 billion flowed into money markets (aka cash), short-term high grade bonds ($1.56 billion) and government bonds ($1.01 billion). Inflows into defensive fixed income assets surged to $2.5 billion from $110 million a week earlier.
And where the money has come out of isn’t a shocker. High growth, momentum tech stocks such as Nvidia and Micron have been battered this month. Meanwhile, the Utilities Select Sector SPDR ETF has popped 2.4% in one month’s time.
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