Lates News

Recently, the record-breaking surge in the US stock market seems to be facing risks as investors are pulling out from previous strong bullish positions. Data from the Royal Bank of Canada shows that although the funds flowing into US stock funds have returned to positive, it is still weaker compared to earlier in the year. At the same time, US and European investors' funds flowing into both US and non-US stock funds are also showing weakness; while the global (excluding the US) funds flow is positive, the trend is deteriorating. Lori Calvasina, head of US stock strategy research at the bank, wrote: "From a longer-term perspective, we believe there are signs of 'buyer fatigue' emerging." Calvasina's concerns mainly focus on three aspects: high stock market valuations, decreasing bullish sentiment in the market, and seasonal weakness. She added: "It is worth noting that the inflow of retail investors' funds into US stock funds has recently weakened." The bank's data shows that the passive funds flowing into US stock funds from retail investors have turned into net outflows, reversing the previous strong momentum.