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Investors have started to bail out of the US stocks last week after the money flow in the treasury raised to a ten year high. About 30 billion USD came out of the global stock funds in the past week alone. It was the largest that anyone has seen since the financial crisis. The outflows from the ETF’s and US stock funds rounded up to 24.2 billion USD, which is the third highest ever.

All the nervousness and the uncertainty along with the big loss that people suffered in the international market is what caused the reaction that we are seeing right now. At the starting of the year, there was an air of the “pervasive euphoria” about the United States, which seemed to have faded with time. The investors seem to be adjusting their positions through T-bills, which are considered to be the safest option. They are supposed to help pull in the funds at a fast pace.

“It’s not like it was in February 2016. It’s not like we’re staring recession in the face, and everyone is cashed up to the eyeballs and policymakers are panicking. That’s not what’s happening. It’s just that people were pricing in Goldilocks forever earlier on in the year, and that was wrong. They’re probably unwinding that positioning,” he said. “It helps explain why the markets have firmed up in the last couple of days. You want to buy fear and sell greed “said Hartnett.

He also went on to say that July could be the month where investors begin to sell volatility. But, this could mean that the market could get rockier as the time passed. Harnett and the BofAML strategists are responsible for releasing the data. They said that the conditions we are seeing and experiencing now can be traced back to 1998 where the late cycle of the global events began to show in the market’s emergence.

They also point to the collapse of the market and the forced deleveraging from the Asian currency crisis and also due to the collapse of the Long-Term Capital Management. The emerging market equities saw a loss of about 3.1 billion USD in the seventh week of the emerging market equities outflow. On the other hand, the Emerging Markets debt fund saw the tenth outflow that was estimated to be at 3.2 billion USD.