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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POSITIVE IMPACT
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.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80