Citadel Securities’ Rubner Sees Risk of Flow Unwind in US Stocks

Risks are growing of an unwind in the powerful fund flows that drove US stocks to record highs in recent weeks, according to Citadel Securities’ Scott Rubner.

The S&P 500 Index has surged about 16% from its March low, supported by robust earnings, corporate buybacks and heavy buying from retail investors. But while fundamentals remain strong, signs of froth are mounting and bond yields are on the rise, said Rubner, the firm’s head of equity and equity derivatives strategy, in a note to clients.