An interesting thing has been occurring in the capital markets lately. Entering into this quarter, a variety of surveys showed that institutional and retail investors were under-weight equities. However, the weekly and monthly data since then has shown continued outflows from equity funds. This means that investor's allocation to stocks has decreased through the quarter, even though investors were already under-weight equities.
This is an unmistakable Bearish tone that investors are broadcasting. But here's the kicker...if they get the bad news they are waiting for, who will be left to sell? And if the data turns out to be positive on the economy and company's earnings, there is a whole lot of buying that will need to take place to simply get back to equal weight.
Something to think about.