Only corporates bought stocks last week
Via Bank of America Merrill Lynch:
Net sales were led by hedge fund clients, as was the case the previous week, while private clients and institutional clients were also net sellers. Corporate buybacks accelerated relative to the previous week, and are tracking above levels we saw this time last year.
BAML
So hedge funds, big money institutions, and individuals want nothing to do with stocks right now.
We know that sentiment is horrible.
We know that several high-profile hedge fund names — Valeant and SunEdison — continue to get mauled.
Pensions and other institutional-type investors are coming off a bruising 2015 and, giving the bid seen in Treasurys to start the year, tried to scrounge up a little yield to get 2015 started right.
And so of course on Tuesday bonds got smoked and stocks ripped higher.
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