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Weekly Flows - Back to Fundamentals Thumbnail

Weekly Flows - Back to Fundamentals

I don't know about you, but I ate too much. It was a beautiful day in Grapevine on Thanksgiving and the dressing was on point! Hopefully next year we will have more guests, because we had way too many leftovers. The flows into equities were strong in the shortened trading week with over 9 billion happening on Wednesday alone. This is the 2nd time in November there has been over 20 billion of flows into equities for the week. Fixed income also had it's 2nd best week of flows in November, but only about .14% of the equity flows.

ETF Flows by Asset Class

Another week of outflows from "safety". There has been strong and steady outflows all month in treasury funds and especially gold funds. Even with the outflows this week and month, Gold funds are still strongly positive on the year. With rising cases of COVID everywhere, it be interesting if this trend continues through the end of the year. Will investors pull back or will FOMO on equities take over.

ETF Flows by Peer Group

All the talking heads in the financial world have all been about the "Rotation Trade" the past of couple of weeks. While I have mentioned that myself, it's really no great mystery. A good portion of pension plans, endowments, state retirement plans are going through their quarterly rebalances. Whoever is doing the trading, the flows point to more of a board based approach in equities. The fundamental factor had a massive Wednesday, a third of their flows for the year.

ETF Flows by Peer Group

I haven't talked much about returns, but I thought this was interesting. Over the last month, energy funds have dominated in the equities asset class. And not green energy, the black gold stuff. Which may be part coming off their lows, part vaccine/going back to normal oil usage, and part election. People may not think the election went oil's way, but remember that during the Obama administration, we were almost running out of places to store oil. I don't think that a Biden admin is going to stop those flows either.

ETF Monthly equity returns

Looking at next week, Black Friday(or black friday week I guess now) numbers, Cyber Monday numbers, COVID hospitalizations/deaths will drive the chatter. I'll be watching gold and treasury funds closely, with an eye on alternatives as well.

I hope you have a great week and take care.

If you want that dressing recipe, good luck🤣 , if you want to discuss your portfolio, give me a shout.


The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.