Money flowing out of stock exchange traded funds suggests some investors are scaling back risk as the market flounders in early summer.
A closer look at ETF flows “makes more evident that the risk-off trade remains in place,” Deutsche Bank analysts said in a note.
“The market couldn’t take it anymore. As more and more disappointing and softer-than-expected U.S. economic data flooded the markets, investors factored in the new environment and pushed the equity markets down the hill,” they wrote.
The S&P 500 lost more than 2% last week and has fallen the past six days.