Q: I heard lot of money has been invested in MONEY MARKET or GIC. is there a way for regular investors to check when money is coming out of money market or GIC and investing in EQUITIES.
Thanks for the great service.
Thanks for the great service.
5i Research Answer:
It can be tough data to find whether money is flowing INTO equities, but there are a few sources that provide fund flows into ETFs, and this can be used as a proxy for funds flowing into equities, while there are certain anomalies at times. For looking at whether funds are flowing into money market funds, or flowing out, the Retail Money Market Funds (WRMFNS) data can assist with this. Traditionally, retail money market funds will decline as bond yields decline in anticipation of rate cuts. The assumption is that if funds are flowing out of money market funds, they are likely either going into other assets (bonds or equities) or discretionary/living expenses. Peask in the WRMFNS data has tended to precede market rallies.