FNArena’s Weekly Insights – June 01 2020
Dear time-poor investor: if this week’s data insights don’t surprise you then I don’t know what will
In this week’s Weekly Insights:
-ABC Of Equities Recovery Rally
-Banks Are Cheap, But…
-No Weekly Insights Next Week
ABC Of Equities Recovery Rally
By Rudi Filapek-Vandyck, Editor FNArena
Investors are constantly plagued by questions for which there’s not always an easy and straightforward answer available.
How much exactly is the landscape for retail landlords changing? Is the trend towards less globalisation irreversible? What stocks and sectors are being impacted by riots in streets across the United States?
Probably the most important questions right now are, after such a strong recovery from beaten down index levels in March, how much upside is left in the short to medium term, and what is most likely to happen next?
Recent share market updates by analysts at Citi and Barclays, based on financial data insights provided by EPFR, will surprise most of you, but also provide some important clues.
Looking for Answers
Financial intelligence platform EPFR is specialised in digging into global funds flows capturing both large institutions and retail investors.
EPFR data, but more so the insights derived from the data, are highly sought after by market analysts and strategists trying to decipher the global mood and latest movements.
Picture their surprise when the latest data update showed virtually nobody had been buying post the March 23 bottom in global equity markets.
Net funds flows into global equities have been on a sharp downtrend ever since the late 2018 conniptions, and calendar 2020 has simply continued that trend. Moreover, institutional investors including hedge funds kept on raising more cash as equities started rallying into April and May.
This raises two obvious questions:
-who has been buying in the past two months?
-what do these institutions intend to do with all that cash now equity markets have rallied so strongly?