16 Feb 2015
US equity positioning at 2 year lows amidst weak data and large outflows – DB
FXStreet (Barcelona) - Strategists at Deutsche Bank, share the investor positioning and flows data for US equities and USD.
Key Quotes
“As a variety of recent US data disappointed, equity positioning fell with our macro data surprise index (MAPI), down to lows last seen around the 2012 fiscal cliff debate.”
“After outperforming through the sell-off in January, equity mutual funds have underperformed (-45bps) this month as the market and cyclical sectors rebounded. US equities (-$33bn) have seen large outflows ytd as money rotated partly to Europe (+$15bn) but largely into driving record inflows to bond funds (+$61bn).”
“As market expectations for Fed hikes have very recently again moved closer, long positions in Eurodollar futures have been cut notably and longer dated bonds remain short.”
“Long dollar positions have remained stable; across commodities the largest long positions remain in precious metals with copper shorts still at extremes.”
Key Quotes
“As a variety of recent US data disappointed, equity positioning fell with our macro data surprise index (MAPI), down to lows last seen around the 2012 fiscal cliff debate.”
“After outperforming through the sell-off in January, equity mutual funds have underperformed (-45bps) this month as the market and cyclical sectors rebounded. US equities (-$33bn) have seen large outflows ytd as money rotated partly to Europe (+$15bn) but largely into driving record inflows to bond funds (+$61bn).”
“As market expectations for Fed hikes have very recently again moved closer, long positions in Eurodollar futures have been cut notably and longer dated bonds remain short.”
“Long dollar positions have remained stable; across commodities the largest long positions remain in precious metals with copper shorts still at extremes.”