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Asset Allocation

May 2019 ETF Cash Outflows Biggest in History

Investors dumped $20 billion in assets during May, 2019 due apparently to concerns about the global economic outlook amidst Trump’s ramped up trade war with China and other tariff threats. Meanwhile, the Fed’s indication that it may cut interest rates further fueled concerns about the slowdown in global economic growth. Said macro analyst Tavi Costa of Crescat Capital, ” “Rate-cuts when late in the business cycle have never been a bullish sign. It reaffirms the many bearish macro signals we have been pointing out. Economic conditions are weakening in the face of asset bubbles everywhere.” Investors are flocking to safe-havens like Treasuries, corporate bonds, and, as data shows the trend continuing from 2018, bond-alternatives like fixed indexed annuities and indexed universal life insurance policies.

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