The month of January saw record outflows of $25bn in US stock ETFs, which eclipsed the $31bn of inflows that were seen for the same time a year ago for January 2018. This reflects bearish US investor sentiment, which was largely driven by by the largest December Equity sell-off for the S&P 500 since 1931. The knock-on effects have resulted in a switch towards perceived safer Fixed Income funds as well as Emerging Market Equities. 

For a sense of perspective, $25bn accounts for only 1.4% of assets in US Equity ETFs, it nevertheless is indicative of a cautious and wary investor mind-set and that is symptomatic of what many perceive to be a much needed market correction for the US Equities....