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Amid recent market volatility, money-market fund assets have reached a record high of $6.22 trillion for the week ending August 14, 2024, according to ICI. This surge is attributed to a flight-to-quality as investors seek safer assets. Concurrently, U.S. investors have pulled $8.92 billion from equity funds, marking the largest weekly outflow since June, driven by concerns over an economic slowdown. Despite this, retail traders have continued to invest in U.S. equities, purchasing $1.8 billion during the dip, with significant investments in companies like Tesla, Nvidia, Microsoft, and Palantir. Risk parity and volatility control funds are adjusting their strategies, with expectations to reinvest as market conditions stabilize.
"We see the LEVERAGED ETF space's cumulative 5d rebalancing as the largest 1 week 'BUY FLOW' in the history of our data at +$34B of buying across these awful products in the past five sessions." https://t.co/J9XZM6jxsg via @dailychartbook https://t.co/4h8dxcFtSc
DB: "Equity fund inflows.. held strong even through the recent turmoil, and continued to pour in this week ($11.5bn). The streak of equity inflows now stretches to 17 weeks, totaling a remarkable $225bn in what is typically a period of weak seasonality"
Retail money market funds are investment vehicles that pool money from individual investors to invest in short-term, low-risk securities. Been pouring in with higher rates. MMFs recently surpassed $1.83 trillion; a record high https://t.co/8UgtHVjeJp
