While VIX concerns remain low, investors continue to buy exchange traded funds (ETFs) that track the index. Last week, futures on the three largest listed stock exchanges recorded cash inflows. It is important to note that the purchases were during falling index values. What does this mean? Large investors are taking advantage of buying cheaply, expecting stock market upheavals in the near future. If we look at the cash flows in the indices, things are right on the back, but only in Europe. Let’s look at the DAX30.
There is a difference between the growth of the indices and the cash flows. There is a negative cash flow, even decreasing until the price rises sharply. This means that the last month’s growth is unfounded.
Source: Bloomberg Pro Terminal
Trader Petar Milanov