@RaAres

over 60% of S&P 500 names are trading 20%+ below their ATHs, yet the index is still holding near its peak 😅 so where is the money going tho'? 🧵👇 ***first, when stocks lose trillions in market cap, that doesn't mean those trillions moved somewhere else. a lot of that value simply disappears as prices get repriced. but actual fund flows show where investors are putting their money. here's what the DATA says 👇🧵 i) equity mutual funds are bleeding money @ICI: ~$788bn left long-term equity mutual funds from jan-sep, including ~$620bn from domestic equity funds. meanwhile, US-listed ETFs attracted ~$1.49tn in net inflows over the same period. ppl are increasingly using ETFs, but these numbers alone don't prove everyone is switching from active funds to passive ones. still, the difference is massive. 🤔 ii) growth stocks are losing some of their appeal large growth funds lost ~$17bn in september, their biggest monthly outflow since january. growth ETFs also recorded their first monthly outflow in over 2 years. meanwhile, broad-market ETFs continue attracting capital. funds like $VOO, $VTI, $IVV, $ITOT & $SPY give investors exposure to a much wider basket of companies. the catch? many of these funds still have significant exposure to the same mega-cap tech names. iii) international stocks are attracting more attention US equity ETFs attracted ~$655bn through september. but investors are also allocating outside the US: - developed international markets: ~$150bn - emerging markets: ~$52bn - global equity funds: ~$72bn in september, international funds captured ~36% of equity ETF inflows despite representing only ~17% of total assets. that's a meaningful difference. 👀 iv) bonds are getting serious inflows short-term government bond ETFs attracted ~$100bn year to date. $SGOV has repeatedly ranked among the ETFs attracting the most money. other bond categories also saw demand: - municipal bonds: ~$53bn - investment-grade corporate bonds: ~$48bn investors can earn yield here while taking less equity risk, although bonds aren't risk-free. v) gold & crypto are seeing money too @GOLDCOUNCIL reported ~$31bn entering global gold ETFs in Q3, including ~$12bn from North America. crypto investment products attracted ~$11bn in Q3 after experiencing outflows in Q2. but recent weekly flows have been mixed. neither market shows a clean, uninterrupted rotation. vi) institutions & retail aren't behaving the same way @GoldmanSachs reported low hedge fund net equity exposure & heavy tech selling. @BankofAmerica clients sold individual stocks while continuing to buy ETFs. meanwhile, @Robinhood reported ~$55bn in deposits through september. deposits don't necessarily mean stock purchases, tho'. so the interesting part is how different the flows look across investor groups. broad ETFs, international equities, bonds & gold are attracting capital while large parts of the US stock market remain far below their peaks. & since broad ETFs still own plenty of mega-cap tech, the money isn't moving in one simple direction...

Not enough of the pool's path has been read yet to draw it.