Traders are voting with their money in August and shifting cash away from funds that target shares, in accordance with Strategas. The S & P 500 has slumped 4% in August, because the inventory market seems to be caught in a late-summer doldrum and rates of interest have spiked. Fund flows recommend this can be extra than simply seasonal weak point. Fairness exchange-traded funds are on monitor for his or her first month of outflows since April 2022, in accordance with Strategas ETF strategist Todd Sohn. “Volumes have not spiked to ranges according to prior extremes, however fairness flows are exhibiting early indicators of a sentiment shift with August’s month so far tally presently working adverse — on tempo for simply the ninth time since 2018. Cash market funds took in +$40 Bn final week, plus ultra-short length bond ETFs noticed over $1 Bn inflows on Thursday, a threshold often reserved for uneasy environments,” Sohn mentioned in a word to shoppers Tuesday. Over the previous week, the SPDR S & P 500 ETF Belief (SPY) has seen $7 billion in outflows, in accordance with FactSet. Cash market funds have been significantly widespread this 12 months, as excessive rates of interest have made them enticing locations for shoppers and buyers to park their short-term money. Cash market property have elevated $749 billion over the previous six months, in accordance with Strategas, which incorporates the interval of the regional financial institution disaster earlier this 12 months.
