Giving up
Some bullet points from JP Morgan’s Flows & Liquidity team to start the week.
Signs of capitulation, as they put it, in the face of a slowing China, the CNY and its “depaluation”, the Fed, a liquidity vacuum etc:
Retail investors were heavy sellers of equity funds for two consecutive weeks on extreme pessimism.
The AAII Survey Bull-Bear gap declined further this week to well below last August’s low.
ETFs, which are all reporting their flows daily and allow for better comparison across time, saw heavier selling over the past two weeks relative to last August.
Although the equity betas of the institutional investors we track experienced a more modest change relative to last August, they currently stand at levels that are overall not far from those seen last September, before the October rebound....MORE
