The Riskalyze Report: Advisors buy the Starbucks dip

1. Starbucks (SBUX)
2. 3-7 year US Gov Bonds (IEI)
3. US Growth (VUG, IVV)

Losers (advisor flows FROM these investments increased substantially):

1. FTSE All-World ex-US (VEU)
2. Emerging Markets Sov Debt ETC (PCY)
3. 1-3 Year Credit Bond (CSJ)

Josh here – an interesting thing happened in Starbucks last week, it closed below its 200-day moving average for the first time since last August’s mini-stock market crash.

SBUX is one of those bulletproof secular growth stories and a highly coveted position among retail and institutional investors alike – nobody parts with it lightly. So the selling in this name way below the 200-day is somewhat notable as a gauge of real investor stress and / or fund redemptions.

But advisors came in and bought the dip.

According to Riskalyze CIO Mike McDaniel, “Advisor use of Starbucks jumped 10% week over week.”

Importantly, advisors have yet to fully commit to buying the stock market dip generally. We see the 3-7 year US Gov Bond ETF (IEI) – often a risk-off proxy position – still among the top three assets bought in advisor managed accounts last week. Usage of IEI increased in use by over 10% week over week.