Moreover, according to the weekly survey by the American Association of Individual Investors (AAII), bullish sentiment has declined. Its positivity measure dropped by close to five percentage points to 34.4% week on week, and at the same time, bearish sentiment crept up to just shy of 30%, versus the 27.5% reading posted the previous week.
The data from the AAII represents the fourth straight week where bearish sentiment has been on the rise, and analysts at Bespoke Investment Group said that it was also worth acknowledging the wilting feeling of positivity as a possible warning of things to come. They said: “It is worth noting that even though the S&P 500 remains right near all-time highs, bullish sentiment is actually more than four percentage points below its average for the current bull market.”
At the time of writing, the FTSE stood at x and the Dow Jones was trading at around x. But at the same time, fears about the end of QE weighed and increasingly fund managers are pointing to the inevitability about the withdrawal of this support from markets.
But Bank of America Merrill Lynch produced research that showed while there have been outflows from some markets – namely emerging markets and Japan – Europe and the US saw inflows, and together these totalled $3.7bn.
Across the equity asset class BofA said equities had attracted another $6bn this week, $3.1bn of which was via ETFs.
Looking at where things stand, BoFA’s Michael Hartnett, chief investment strategist, said that while it looked as though equities were on course for their best year in terms of flows since 2004, investor appetite was not so great that stocks had become a sell.
“On course for biggest Equity inflows since 2004…but investor sentiment is not frothy enough to make correction call… and would require an improbable $16bn of long-only equity inflows in next 2 weeks to trigger “sell” signal,” he said.
Moreover, according to the weekly survey by the American Association of Individual Investors (AAII), bullish sentiment has declined. Its positivity measure dropped by close to five percentage points to 34.4% week on week, and at the same time, bearish sentiment crept up to just shy of 30%, versus the 27.5% reading posted the previous week.
The data from the AAII represents the fourth straight week where bearish sentiment has been on the rise, and analysts at Bespoke Investment Group said that it was also worth acknowledging the wilting feeling of positivity as a possible warning of things to come. They said: “It is worth noting that even though the S&P 500 remains right near all-time highs, bullish sentiment is actually more than four percentage points below its average for the current bull market.”
At the time of writing, the FTSE stood at 6,674 and the Dow Jones was trading at around 16,020. But at the same time, fears about the end of QE weighed and increasingly fund managers are pointing to the inevitability about the withdrawal of this support from markets.
But Bank of America Merrill Lynch produced research that showed while there have been outflows from some markets – namely emerging markets and Japan – Europe and the US saw inflows, and together these totalled $3.7bn.
Across the equity asset class BofA said equities had attracted another $6bn this week, $3.1bn of which was via ETFs.
Looking at where things stand, BoFA’s Michael Hartnett, chief investment strategist, said that while it looked as though equities were on course for their best year in terms of flows since 2004, investor appetite was not so great that stocks had become a sell.
“On course for biggest Equity inflows since 2004…but investor sentiment is not frothy enough to make correction call… and would require an improbable $16bn of long-only equity inflows in next 2 weeks to trigger “sell” signal,” he said.
