More outflows into Mutual Funds 2023

 

After sliding off the peak for the better part of last year, investor flows into stocks finally turned negative, signaling a critical shift in investor sentiment.

The chart above from Yardeni Research tracks total investor flows into equity-oriented mutual funds and ETF over the last 10 years. As of the end of December, investors aren’t simply buying less stocks… they’re now net sellers. Markets could be entering a “Risk-Off for Real” environment. Capital is headed for the sidelines. And I see three big risks looming over investor’s heads that will make cash king over the coming months.