Via Morgan Stanley:
Retail Squeezing Institutions – but Retail Demand May be Slowing
Another short squeeze, a new worst day for Growth vs Value (MSZZGRVL) after just setting that record a week ago, the 16th worst day for Momentum (MSZZMOMO), etc. and investors are asking “who’s buying (and does it continue)” and “does the rotation have legs”. Evidence points to retail being a big contributor to both the recent equity rally and to the pro-cyclical rotation. And both the rally and rotation likely continue over the medium-term – but that likely requires a handoff from retail to broader institutional sponsorship that could mean in the near-term there is some reversion.
