What’s all the chatter about month-end and quarter-end rebalancing?
As much as technicals and fundamental drivers are key parts of the market, flows are also something that needs to be considered – especially when there are large amounts reportedly involved during crucial periods such as this one.
Equities and risk sentiment have been a little jittery lately and while there seems to be some room for comfort so far today, the coast may not be clear until we get to April.
While these flows may have already been a factor in trading this week, it may be tough to extrapolate much from the actual market mood until the month and quarter actually ends – when all of this chatter is put behind us.
“A lack of these flows, and broad anticipation of ‘month/quarter-end’ effect, could result in the market moving higher near term, all else equal.”
Either way, this is just something to consider alongside other factors as we navigate through the remaining days of March.