And now we know that, as BofAML reports, net sales by hedge funds last week were the third-largest in history and the largest since last Feb...
Private clients were net buyers for the straight week, while institutional clients sold stocks for the fifth week and hedge funds were also net sellers following four weeks of net buying. Clients sold large and mid caps but bought small caps. Buybacks by corporate clients picked up slightly vs. the prior week, but year-to-date are tracking the lowest of any comparable period since 2012.
Net sales were largest in Consumer Discretionary - which notably saw its biggest sales by our clients in our data history (since 2008).
All three client groups (hedge funds, institutional clients, private clients) were sellers of Discretionary stocks last week, where this sector has seen among the weakest results and guidance this earnings season. Clients also sold stocks in Tech, Real Estate, Materials and Utilities.
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As we warned previously... If you can't spot the sucker at the table... it's you!