US Equities See Remarkable $56bn Inflows, Deutsche Bank Warns of Challenges

Inflows into US equities have been remarkable, with significant amounts pouring in according to EPFR and Deutsche Bank. Last week alone, equity funds saw massive inflows of $56bn, adding to the already strong inflows totaling $260bn since late May. Deutsche Bank notes that while consolidated equity positioning is very long, it has not yet reached the extremes seen in 2021. Despite the positive trend, Deutsche Bank warns that risk appetite could face challenges as equity inflows are now well into the upper half of their historical range relative to income, entering a seasonally weak period.