Deutsche Bank strategists say investor positioning in technology stocks remains overweight after a rotation into the sector pushed prices close to the top of a long-run trend. Money-market funds received the largest inflows in over 6.5 years.
Deutsche Bank strategists say positioning in technology stocks stays asymmetric and overweight, with the rotation into the sector pushing prices close to the top of a long-run trend.
Strategists led by Parag Thatte noted that positioning in mega-cap growth and technology stocks fell last week but stayed overweight. Consumer cyclicals rose to modestly overweight, while other sectors remained underweight.
Overall equity positioning declined slightly but remains modestly overweight, the strategists said. Discretionary investor positioning stayed modestly underweight, according to the note.
Systematic strategies, however, dropped from elevated levels but remain overweight. Within that group, volatility control funds increased their equity allocation, while commodity trading advisors' equity positioning fell materially but remains elevated.
Inflows to equity funds eased to $12.4 billion. Bond funds saw inflows jump to a four-month high of $33.8 billion. Money-market funds received $166.4 billion, the largest inflows in over 6.5 years.
Source: Investing.com
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