As the month end..............>

GLOBAL MARKET/OPINION: As the month end approaches, there is a lot of talk of a

significant rebalance by balanced fund/pension funds but the impetus for this

has faded somewhat as equities declined this week. 

- To give some perspective for Europe, the eurostoxx index has provided a

negative 3.9% total return so far this month and the Bloomberg-Barclays

aggregate bond index has lost 0.16%. Looking at monthly swings between bonds and

equities over the past ten years, this would be in the 74th percentile that

favours buying equities. It is the largest flow to European equities since June

2016.

- In the US, the situation is also stretched with the S&P providing a negative

2.7% total return and the Bloomberg-Barclays aggregate bond index down 0.99%.

Looking at monthly swings between bonds and equities over the past ten years,

this would be in the 88th percentile that favours buying equities i.e. one of

the largest switches back to equities and largest since Jan 2016.