All Money Market Funds Total Net Assets Investors currently hold $6.154 trillion in money market funds, which is being interpreted as a contrarian bullish signal for the stock market. Image: BofA Global Research
Current Market Pricing for Fed Funds Rate Despite initial expectations for significant interest rate cuts in 2024, the market is pricing in the first Fed rate cut at the September 18th meeting. Image: BofA Global Investment Strategy
U.S. Domiciled Funds: Active vs. Passive as a % of Assets Under Management Passive accounts for 54% of all U.S. domiciled fund assets, highlighting the significant growth and popularity of passive investing strategies in recent years. Image: BofA US Equity & Quant Strategy
Hedge Funds – Net Buys Hedge funds continue to hit the sell button, resulting in significant outflows over the past 3 months. Image: BofA Securities
Flows by Year into Active vs. Passive Funds Passive funds are growing in popularity as investors prioritize lower fees, potential tax advantages, and doubt active fund managers’ ability to consistently outperform the market. As a result, active funds are facing capital outflows. Image: BofA US Equity & Quant Strategy
Hedge Funds’ Cyclical vs. Defensive Positioning During economic expansion, investors favor cyclicals over defensives. The current low hedge fund exposure to cyclical vs. defensive sectors may present a potential opportunity for contrarian investors. Image: BofA Global Research
Cumulative Flows to Crytocurrency Funds Record inflows into crypto funds in 2024 reflect the growing interest and confidence in cryptocurrencies among both retail and institutional investors. Image: Deutsche Bank Asset Allocation
Implied Fed Funds Target Rate The FOMC’s latest dot plot projects only 25 basis points of rate cuts for 2024, which looks hawkish at first glance. Image: Bloomberg
Equity Funds Flows Fund flows are frequently viewed as a barometer of investor behavior and sentiment. The tech sector has sustained inflows year-to-date. Image: Goldman Sachs Global Investment Research
Fed Funds Rate and Fed Funds Futures Deutsche Bank’s forecast for the fed funds rate remains more hawkish than many mainstream projections, expecting a single rate cut in December 2024, followed by modest reductions in 2025. Image: Deutsche Bank