Its always interesting to note who the participants are in the market. The advent of mutual funds, tax benefits and continually decreasing interest rates have led to local institutions becoming larger and larger holdings in equities versus pre 2010.
It does appear that the prop desks aren’t doing that well (if they sell less than they buy, doesn’t this imply a loss?)
Retail investors seem to be a wilder variant of the prop desks and;
Foreign institutions, well if this is a long term reversal in flows, we could be seeing the market maintain these levels of going higher in the future
3 thoughts on “Random Thought: Fund flows since 2010”
xavi
This market is getting a bit frothy valuation wise..hope investors don’t become complacent. The Brexit “falling knife” actually has turned into quite a nice windfall for those who stuck to their guns and bought the dip.
I would think the time to cash out is nearing but then again knowing this market it could realistically overshoot to 1600 points on unwarranted exuberance .
I would love for this market to double from here, if the constitution goes through, elections announced, I can see things remaining buoyant. Plus even more liquidity coming out from the UK, Europe and potentially Japan in 4Q16, could be a wonderfully irrational period to do well….or not?
xavi
This market is getting a bit frothy valuation wise..hope investors don’t become complacent. The Brexit “falling knife” actually has turned into quite a nice windfall for those who stuck to their guns and bought the dip.
I would think the time to cash out is nearing but then again knowing this market it could realistically overshoot to 1600 points on unwarranted exuberance .
Pon
I would love for this market to double from here, if the constitution goes through, elections announced, I can see things remaining buoyant. Plus even more liquidity coming out from the UK, Europe and potentially Japan in 4Q16, could be a wonderfully irrational period to do well….or not?
Jay
See Abe’s next stimulus package? SET @ 1600 by dividend season is a foregone conclusion, we may even see an all time high before New Year!