CTAs Exposure to Equities With equity allocations sitting in the 22nd percentile, Commodity Trading Advisors appear to maintain a cautious stance on the likelihood of positive returns in equities. Image: Deutsche Bank Asset Allocation
Equity – MSCI Japan Market Cap Relative to World Market Cap Considering the improved outlook, attractive valuations, and progress in corporate governance, should investors consider increasing their exposure to Japanese equities? Image: BofA Global Investment Strategy
Beta Exposure of Large Cap U.S. Active Managers vs. S&P 500 Among active managers, there is a significant drop in beta exposure to GFC levels. Image: BofA US Equity & Quant Strategy
Value vs. Growth – Active Managers’ Relative Exposure in Low P/FCF vs. High Long-Term Growth Despite the rally in Value, active managers are still ~30% underweight Value vs. Growth. Image: BofA US Equity & Quant Strategy
CTAs Exposure to Equities CTAs overall equity exposure is in the 42th percentile. Image: Deutsche Bank Asset Allocation
Major U.S. Mutual Funds’ Net Exposure to U.S. Equities U.S. equity exposure of major U.S. mutual funds is in line with the historical average. Image: Nomura
U.S. Household Ownership of Stocks, % of Total Assets The elevated equity exposure of U.S. households, while not an absolute sign of impending market downturns, highlights the necessity for cautious investment decisions and strategic portfolio management. Image: J.P. Morgan
GWIM Cash Allocation as % Asset Under Management BofA’s private clients have reduced their cash allocation, remaining below the long-term average, while increasing their equity exposure. Image: BofA Global Investment Strategy
S&P 500 Index and Moving Average Crossover Signal The use of moving average crossovers, particularly on a weekly basis, can be a valuable tool for investors in managing risk to equity exposure. Image: Real Investment Advice
Flow – % Share of Rolling Three-Month ETF Inflows Investors reduced their equity exposure. Over the past 3 months, nearly 50% of all ETF inflows have funneled into HY, IG and Agg bonds. Image: Arbor Research & Trading LLC
Pullbacks on the S&P 500 While 5% pullbacks can be unsettling, they are a normal part of the market cycle and often present good entry points for traders and investors to add exposure during a bull market. Image: BofA US Equity & Quant Strategy