Biggest Inflow in Gold and Energy:Retail is Back to Buying Equities
Last week, we observed that gold assets have performed better than tech stocks for the year.
This week, we noticed that energy area also perfoms well and continue to attract money inflows.
From the perspective of industry, 8 out of 11 US industries are net selling, with industry, non-essential consumer goods, information technology, healthcare, and real estate ranking at the forefront. At the same time, the only three sectors that were net bought were finance, energy, and materials.
By industry, lets take a look at our march leaders for the first 3 weeks:
$iShares Silver Trust(SLV)$ +6%
$SPDR Gold Shares(GLD)$ +5.8%
$Energy Select Sector SPDR Fund(XLE)$+1.7%
$Teucrium Wheat Fund(WEAT)$ +1.2%
$Global X Uranium ETF(URA)$ +1%
Retail investors are buying the bottom of US stocks and betting on the financial $Financial Select Sector SPDR Fund(XLF)$ and energy sectors($Energy Select Sector SPDR Fund(XLE)$ ).
From a longer time perspective:$Energy Select Sector SPDR Fund(XLE)$ jumped up to 3rd place, and energy sector is the big winner from the COVID lows:
Energy $Energy Select Sector SPDR Fund(XLE)$ +267% since 03/21/2020；Tech $Technology Select Sector SPDR Fund(XLK)$ not too far behind with +239% the same time.
S&P 500 Sector | Performance Since 03/21/2020 |
267.40% | |
239.34% | |
129.09% | |
142.56% | |
167.16% | |
163.31% | |
114.44% | |
87.21% | |
68.19% | |
56.25% | |
Utilities | 65.53% |
Technically analysis，Energy stocks $Technology Select Sector SPDR Fund(XLK)$ big breakout and seasonality is bullish for oil and energy stock through June.
Seems A breakout above $95 has A LOT of implications. It seems people believe the fed is going to start cutting rates this year....while energy is on the verge of breaking out?
Will you guys add exposure or wait for further confirmation?
Buy the dip now?
According to the latest data, the net selling scale of US stocks has reached the highest level in seven weeks, with short selling exceeding long buying.
BofA's report on flows last week indicates:
UBS on Retail: Retail is Back to Buying Equities
GS on Seasonality, SPX Flow of Funds usually sparks since end of March.
Source: Goldman Sachs FICC and Equities, Gail Hafif as of 3/20/25. Past performance is not indicative of future returns.
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