Fixed income grabbed $5.8B inflows this week. Investors rotated sharply into bonds as equity markets hemorrhaged. Flow imbalance hit 54.7% showing modest buying pressure. The three-month picture showed $238B flowing into debt demonstrating sustained defensive rotation.
Equities bled $3.9B last week reversing quarter-long strength. The asset class absorbed $499B inflows over three months yet suddenly turned hostile. Commodities crashed with $11.3B outflows as flow imbalance sank to 23.4%. Only 23 cents moved in for every dollar fleeing.
Japan dominated with $19.7B inflows last week. The surge built on $127.6B quarterly flows making Japan the hottest developed market globally. Flow imbalance reached 70.3% demonstrating conviction buying. Taiwan grabbed $3.6B with 91% flow imbalance showing almost zero selling pressure.
The US shed $27.8B in one week alone. The hemorrhage came despite $125B quarterly inflows showing sudden sentiment collapse. China lost $1.4B weekly extending $98.2B quarterly outflows. Emerging markets ex-China bucked the trend grabbing $1B with 99.4% flow imbalance.
Energy led inflows with $1.1B weekly as oil volatility triggered positioning. The sector grabbed $18.1B quarterly flows ranking second only to industrials. Flow imbalance held 61.2% showing buyer dominance.
Tech crashed with $2.4B weekly outflows extending pressure. Materials shed $1.8B with just 27.2% flow imbalance. Industrials topped the quarter with $23.9B inflows yet lost $512M last week. The reversal signaled rotation fatigue.
Vanilla strategies absorbed $26.4B inflows last week. The passive approach dominated with 54.4% flow imbalance. Active funds grabbed $8.1B showing 75.8% imbalance as managers picked spots.
Fundamental strategies hemorrhaged $20.7B with just 5.8% flow imbalance. Only $1.36 flowed in for every $22 flowing out. Dividend funds lost $4.3B while value strategies shed $2.9B. Growth funds dropped $2.7B showing broad factor weakness.
Risk-off flows accelerated as bonds overtook equities for the first time in months.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
