Bonds grabbed $5.8B last week. Equities shed $3.8B. Commodities bled $11.3B. Investors rotated hard into fixed income as volatility spiked.
The trend marks a sharp reversal. Over three months equities pulled $492B while bonds took $237B. But last week flipped the script. Flow imbalance hit 54.7% for bonds showing sustained buying pressure. Equities fell to 49.5% indicating balanced selling.
Japan dominated with $19.7B inflows last week. Flow imbalance reached 70.3% showing strong conviction. Taiwan added $3.6B with 91% imbalance. The US hemorrhaged $27.8B representing the biggest outflow globally.
That US bleeding contrasts with the three month picture. America pulled $117B over the quarter second only to Japan's $127B. Developed Europe reversed from $21.3B inflows over 3m to $2.1B outflows last week. China bled across both periods losing $1.4B weekly and $96.8B quarterly.
Energy led last week with $1.1B inflows. Flow imbalance hit 61.2% as crude volatility persisted. Tech shed $2.4B. Materials dumped $1.8B with just 27.2% flow imbalance showing aggressive exits.
The quarter told a different story. Industrials topped with $23.8B inflows and 71.3% imbalance. Energy grabbed $18.2B. Materials pulled $12B. Tech bled $5.9B over three months but the weekly exodus accelerated sharply.
Vanilla passive strategies grabbed $26.4B last week. Active funds added $8.1B with 75.8% flow imbalance. Fundamental strategies bled $20.7B showing the sharpest exodus. Dividend funds lost $4.3B. Value shed $2.9B. Growth dropped $2.7B.
Over three months vanilla dominated with $262B. Active pulled $139B. Equal weight grabbed $23.1B. The weekly reversal in fundamental strategies suggests rotation away from active stock picking toward simple index exposure.
The shift signals clear risk off sentiment. Bonds over stocks. Passive over active. Asia over America.
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.
