S&P 500 rises as health care, tech gain to overshadow Fed independence concerns
Investing.com -- Systematic strategy positioning is vulnerable to rising volatility due to increased exposure levels built up during the recent low volatility environment, according to Deutsche Bank (ETR:DBKGn) strategists.
The team, including Parag Thatte, pointed out that while CTA exposure to US equities is slightly above average, exposure in other regions such as Europe, emerging markets, and Japan has reached extremely high levels.
Deutsche Bank strategists also noted that the S&P 500 is overdue for a small pullback. Historically, the index experiences small declines of over 3% every 1.5 to 2 months on average, but it has been more than 3 months since the last such pullback in April.
In fund flow developments, ETF and mutual fund inflows increased last week to their highest level in 6 weeks, driven by US equities and bonds, while money market funds experienced outflows.
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