FNArena’s Weekly Insights – November 21 2022
In this week’s Weekly Insights:
-Preparing For Bear Phase II
-Conviction Calls
-Research To Download
-AIA Investor Day In Sydney
By Rudi Filapek-Vandyck, Editor
Preparing For Bear Phase II
Sometimes the most important market insight is hiding underneath daily share price movements.
Intriguingly, the latest update into who’s buying and selling US equities by S&P Global Market Intelligence is showing an ever-widening gap between financial institutions (selling) and retail investors (buying).
The data available are only up to November 2, but it seems unlikely things have dramatically reversed in the two weeks since.
It is S&P Global Market Intelligence’s observation that selling has been happening pretty much across the spectrum, suggesting institutions have been decreasing their exposure to equities generally, without singling out a specific sector or part of the market.
This strongly suggests risk-off attitude and a generally more defensive positioning, away from higher risk assets.
For good measure: October witnessed retail investors net selling during two weeks and net buying during two weeks for a slightly negative net outcome for the month.
But the attention grabbing observation remains one of decisively reducing exposure by institutions, as has now been the case throughout the calendar year to date (see graphic overview by clicking below).
