The Riskalyze Report: Advisors Bet on Rising Rates

1. Financials (XLF)
2. US Equity (SPY, IWV, QQQ)
3. Catalyst Hedged Futures Strategy (HFXAX, HFXIX)

Losers (advisor flows FROM these investments increased substantially):

1. Mid Caps (MDY)
2. Amazon (AMZN)
3. Qualcomm (QCOM)

Josh here – Banks were added across advisor portfolios, specifically via the XLF ETF that tracks the S&P 500’s financial sector stocks.According to Riskalyze CIO Mike McDaniel, this is a first. “First time I can remember financials being on the winner list, after being a constant name on the losers list.” This matches up well with the now over-50% chance of a December rate hike that the bond market is currently pricing in.

Advisors are willing to make the bet early, it seems, as the XLF stocks may enjoy the prospects of a rising spread from net interest margins. Or not, we’ve had plenty of fakeouts and false starts before. Guess we’ll find out soon enough.

Not shown here – Google and Microsoft were also on the loser’s list this week.

*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).