No Really, Who Is Buying?

One week ago, when showing a BofA chart demonstrating the record divergence between the S&P500 and US equity flows... 

... and which BofA itself prefaced by saying "big decoupling in recent weeks between US equity flows and prices ...correction risks will grow in absence of fresh inflows in coming weeks" we asked: "who is buying?"

We bring this up because over the weekend we say a different manifestation of the same chart, this time from Deutsche Bank. This is what the German bank with the €50+ trillion in derivatives had to say:

There have been large inflows to bond funds and outflows from equity funds in the US, according to EPFR data. On a three-month basis, the flows are at or near extremes, a mirror image of those during taper tantrum. Over the long term, the flow differentials have correlated with equity risk premium. The recent heavy inflows to bond funds could be a result of changing perceptions of Fed hike timing. ECB QE has pushed investors into risk assets.

Except for stocks, of course, based on where the equity flows are not going. Because as the chart below shows, the cumulative three-month net flows into, or rather out of equities, is now the largest on record.


So, again, we ask: just who is "buying" stocks? Because the greatest rotation is here, and as far as non-central bank participants are involved, it is into bonds and out of stocks.