When a Record $46 Billion Exit Makes Perfect Sense: Taking Stock

It’s not surprising that people are taking their money out of stocks, especially when we’ve seen very little follow-through in any bounce ever since the bull market began to unravel in the beginning of October.

The lack of conviction from true buyers has been perturbing if you’ve been heavily exposed on the long side. The clear rotation into the most defensive part of the stock market for months now, as the graphic below shows (utilities, REITs and consumer staples as the only three members of the S&P 500 in positive territory since the end of September), only adds to the anxiety.