The Riskalyze Report: Advisors Go All In on “Rising Rates”

At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $120 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…

Riskalyze

December 4th – December 10th

Winners (advisor flows TO these investments increased substantially):
  1. Floating Rate (FTSL, BKLN)
  2. Financials (XLF)
  3. S&P 500 Value (IVE)

Losers (advisor flows FROM these investments increased substantially):

  1. Utilities (XLU)
  2. Long Term US Gov Bonds (TLT)
  3. Consumer Staples (XLP)

Josh here – Mike McDaniel, CIO at Riskalyze, tells us that “Advisor use of floating rate and financials increased over 10% week over week.” That’s about as ‘all in’ as it gets as far as betting on rising rates.

Even on the sell side we see the same bets being placed. Utes, long-term govies and dividend-focused consumer staples were all for sale bigly this week. Mike notes that “Advisor use of each of the listed losers decreased by over 10% week over week.”

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

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