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…
November 20th – November 26th
- Biotech (IBB)
- Technology (XLK)
- US Mid Cap (VOE)
Losers (advisor flows FROM these investments increased substantially):
- Municipal Bonds (MUB)
- Utilities (XLU)
- Precious Metals (SLV, GLD)
Among the sectors left behind in the initial burst of Trump Fever, biotechs and technology were the standouts. I guess because they’re both knowledge-based industries and globally focused as opposed to coal miners or gun sellers. I don’t even know anymore. Why technology and pharma should be viewed as “Hillary sectors” is beyond me, but this was the narrative.
But narratives don’t last. Advisors bought the dip (or, should I say, lag) in these sectors last week. Mike McDaniels, CIO of Riskalyze, tells me that “Advisor use of Biotech increased over 10% week over week.”
In the losers column, “Advisor use of Municipal Bonds, Utilities, and Precious Metals decreased by over 10% week over week.” This is more of that “sell yield” trend that’s emerged alongside the soaring rate on the 10-year and the market’s near certainty about a December rate hike.
*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).