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Investing.com -- The S&P 500 has made a full recovery in less than two months, marking the shortest period of volatility shock on record, according to strategists at Deutsche Bank (ETR:DBKGn).
This is a significant turnaround, as typically, equities would require six to seven months to complete a round-trip following a volatility shock.
Deutsche Bank strategists, including Parag Thatte, define a volatility shock as a 1.5 standard deviation move. Usually, at this point in the recovery process, the S&P 500 would still be nearly 10% down. However, the index has shown an impressive gain of almost 6% since its close on April 2.
Despite this recovery, US ETF and mutual funds have seen notable outflows for the third week in a row, amounting to a loss of $7.5 billion last week. In contrast, equity funds outside the US have experienced inflows.
The strategists also noted that aggregate equity positioning has slightly increased but remains underweight. Discretionary investor positioning has slightly decreased and is nearing neutrality. Meanwhile, systematic strategies continue to trend upward, though they remain underweight.
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