The Riskalyze Report: Advisors Raise Cash, Sell Berkshire

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

September 6th -September 12th

Winners (advisor flows TO these investments increased substantially):
  1. CASH/Money Market
  2. Broad US Stocks (IVV,IVW)
  3. Vanguard FTSE Developed Markets ETF (VEA)

Losers (advisor flows FROM these investments increased substantially):

  1. Small Caps (IJT, VB)
  2. Financials (XLF)
  3. Berkshire Hathaway (BRKB)

Josh here – a few interesting trends worth noting. Berkshire Hathaway was up for sale this week. It’s a quasi-financial with a railroad subsidiary, so this makes sense given the fact that the rest of the banks were also for sale (XLF) last week as well.

In the plus column, yet another weekly increase in cash holdings. According to Riskalyze CIO Mike McDaniel, cash holdings increased by 8.5% versus he prior week, which is a noteworthy jump. Advisors’ clients could be signaling some nervousness given the coming Fed meeting so perhaps we’re seeing advisors move to appease them a bit. Or perhaps there’s an opportunistic thing going on here, like “let’s make sure we’re in a position to take advantage if there’s another panic.”

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

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