The equity ‘pain trade’: Eye on the World 05/08/20

US markets continue to grind higher, with multiple supports in our view, as HOT TOPICS shows rally been a ‘pain trade’ for most, whilst poor sentiment and positioning remains a contrarian support. US equity outflows have accelerated, amid preference for bonds, but with an increasing sector barbell as tech inflows have been accompanied by some recent cyclical rotation. International equity flows have been more resilient and could give overseas FX strength a second leg.

16-page daily includes: Market recap and What to watch; Hot Topic analysis; Country and Sector allocation eye; Key views; US and global performance, valuation, earnings, and macro forecasts; and report Library