Although net inflows into US equity funds remain negative and their holding models are at a low 40th percentile, overall market sentiment among retail and institutional investors continues to improve, providing positive support for the broader market in the medium to medium term.
Rotation and liquidation continue between "stocks vulnerable to AI" and "core AI stocks"; fund transfers between semiconductors and software have slowed. Healthcare has become a new investment focus, with US healthcare sector hedge fund positions not yet showing a significant rebound, and healthcare ETF inflows remaining positive, indicating further room for improvement in this sector. The European healthcare sector is also viewed favorably until the end of the third quarter, with hedge fund sentiment turning bullish.
Other sectors: Retail stocks were hit by negative news, and hedge funds have begun shorting again (e.g., global brand companies); while metals and mining have surged over the past month, their holdings do not yet appear overly crowded.
European bank stocks have been heavily sold off by hedge funds. (The above views are from a JPMorgan report dated August 21.)
