Barclays strategists said Wednesday that equity fund flows have remained positive for the fifth consecutive month in March amid sustained cash deployment and increased retail investor activity.
On the other hand, Commodity Trading Advisors have slightly reduced their previously elevated equity positions while discretionary investors, including Long/Short Hedge Funds and Mutual Funds, continue to maintain lighter equity positions than typically observed. “With central banks apparently itching to cut, rotation to risk assets is under way,” strategists said.
Resilient earnings fundamentals, combined with the anticipated easing cycle by central banks, are expected to rejuvenate equity flows and broaden performance across sectors.
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