Global equity positioning declined last week but remained modestly overweight, Deutsche Bank strategists led by Parag Thatte said on Monday.
Aggregate investor exposure stayed below levels implied by current earnings growth, indicating room for further increases. Discretionary investors reduced their exposure to a slight underweight, while systematic strategies maintained steady overweight positions.
Volatility control funds held equity allocations near elevated levels, and Commodity Trading Advisors increased their equity positioning, which remained above historical averages.
Equity funds saw inflows accelerate sharply to $40.1 billion last week, driven primarily by U.S. equity funds, which attracted $28.9 billion. Bond funds continued to draw strong inflows of $21.4 billion, while broad global funds recorded $11.7 billion in net purchases. Technology funds returned to positive territory with $2.3 billion in inflows after two consecutive weeks of outflows.
