Index investor spent also more money into QQQ/SPY.
US rates continued moving higher. The relation between higher rates and a higher S&P500 were not straightforward in the past year though.
Note that the US$ has been strong against all other currencies, but I find it strange that large players are mostly not buying the US$ here.
The small caps attracted the least money.
Conclusions:
Same as yesterday: as far as US Treasuries are sold and liquidity move into already very expensive equities assets, large caps/popular ETFS will continue attracting most of the money simply because they are the most liquid instruments.
Is this a sign that inflation is going to shoot higher? Is it a sign that China is selling US Treasuries? Is it a sign that the new tax deal will greatly help profitability?
Maybe all three together or maybe something else such as trend following algos.
