Institutional Investors Flee Stocks At Second-Highest Pace Since 2008 Despite Market Boom: Where Is Their Money Going?
Portfolio Pulse from Piero Cingari
Institutional investors recorded the second-largest weekly outflow from single stocks since 2008, led by sales in Tech, Discretionary, and Staples sectors. Despite this, the SPDR S&P 500 ETF Trust (SPY) reached new highs. The trend suggests a shift towards diversification, with institutions buying equity ETFs while selling single stocks. Private clients and hedge funds were buying as institutions sold, with a pivot towards mid and small-cap stocks and growth/blend ETFs over value ETFs.
January 30, 2024 | 5:13 pm
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Despite institutional outflows from single stocks, SPY reached new all-time highs, indicating continued market strength and investor confidence in large-cap equities.
The SPY ETF's continued growth to new highs despite institutional selling suggests a decoupling of institutional actions from ETF performance in the short term. The trend towards diversification and the buying activity by private clients and hedge funds may support the ETF's performance.
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IMPORTANCE 70
RELEVANCE 80