Investors have been bailing out of equity funds at a rapid clip. So how come stocks keep rising?
One Citigroup analyst may have the answer: It appears that, as regular investors flee, central banks have stepped into the breach.
Asset purchases by central banks have risen to their highest levels since 2013, suggesting that the rallies in equity and credit markets—which some say already appear stretched—could continue picking up steam, according to Matt King, a credit analyst at Citigroup.
He illustrates his points in the charts below:
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