Key facts
- Goldman Sachs observes that CTA, Retail, and Corporate investors are sponsoring equities.
- Corporate buybacks are noted as being in full swing.
- Hedge funds increased net exposure and gross/net leverage.
- Long-only investors were broadly neutral, with asset managers being slight net sellers of S&P futures.
- US equity funds attracted demand, but Europe, Japan, and parts of emerging markets saw outflows.
Goldman Sachs observes that various investor types, including CTAs, retail traders, and corporations engaging in buybacks, are actively supporting the equity market. This broad sponsorship suggests strong demand for stocks, even as traditional valuation and concentration metrics might indicate caution. The S&P 500 has seen nine consecutive weekly gains, supported by strong earnings, steady inflows, retail demand, systematic buying, and aggressive buybacks.