Singapore Jan 19, 2021
Chinese Equities rise with a lag
In an earlier issue of this newsletter, we had noticed that while investors had started buying Chinese equities in early November, prices had refused to budge. Finally (in a move that reminded me of a second hand stick shift that I once owned!) the gears engaged after a perceptible delay and Chinese equities jerked forward.
The chart above superimposes the China A50 ETF prices on top of cumulative buying volumes of Chinese equities. As you can see, the delay between start of buying and price rise was almost 2 months. …
Singapore Jan 12, 2021
In the chart above we have plotted the cumulative trading volume by the major asset classes since the US elections. For purposes of clarity Equity Funds have been grouped with Equities and likewise for Fixed Income.
As you can see, the ‘Buy Equities and Sell Fixed Income’ trend is alive and well.
But there are a few key differences
There are some key differences as compared to what we saw during most of 2020. The chart below is for the same time period as above but shows more granularity in asset classes. …
Singapore, Jan 4 2021
Happy New Year and welcome to Canopy’s Investor Behaviour Newsletter (Week 1 of 2021). I hope you managed to switch off and spend some time with your loved ones during the break.
Investors ended 2020 on a really bullish note for equities. The chart above shows cumulative buy and sell volumes by the 3 major asset classes for the entire year. As you can see from the chart the fixed income ‘wild swing’ had subsided by October and the last 2 months have been all about equity buying.
The next chart (below) drills deeper into the equity flows. Here we see the cumulative buy/sell volume of major equity sub-asset classes (the ones where the flows were not significant have been eliminated for sake of clarity). …
Singapore, Dec 21 2020
Welcome to Canopy’s Investor Behavior Newsletter (Week 52 of 2020). This week we will look at Brexit, or as the market would like to call it, the lack thereof.
The chart above is a running total of buy and sells for UK and European assets. As you can see from the chart, there is a consistent buy pattern on UK equities which has been going on since April (and has followed the overall ‘risk on’ sentiment that we are seeing worldwide).
These UK equity purchases gained momentum since mid October. This is very interesting because this was happening as Brexit negotiations became more and more deadlocked. …
Singapore, Dec 14 2020
This edition (week 51 of 2020) of the newsletter begins with a bit of a gloat. In our LinkedIn post on Oct 21 we had said that Canopy data when combined with bank research was suggesting that the time was right to buy North Asian equities. The chart above shows that North Asian equities (defined as an average of CSI 300, TAIEX, KOSPI and Nikkei 225) outperformed the S&P 500 and DAX by around 6% since then.
The data … it talks !!
Thank you so much for your emails and also for responding to the survey last week (and apologies in case our Google Forms did not work behind your company’s firewall). Most of you wanted to know what assets the best performing investors bought, so here goes. …
Singapore, Dec 7 2020
November was the month of buying equities and we saw net buying in every single equity asset class we track (see chart above). Essentially
To find which stocks were most popular please look at the chart below.
Singapore, Nov 24 2020
Welcome to Canopy’s Investor Behavior Newsletter (Week 48 of 2020), where we analyze trends seen in our investment reporting activity.
The chart above shows the percentage allocation to each industry sector within each investor’s equity portfolio. (Please see last week’s update to see how the allocation between equity and fixed income changed this year)
Financials started the year as the favourite and remained the highest industry sector allocation during all of 2020. However, it’s allocation has steadily deflated since March with the Technology sector being the main beneficiary.
That said, the headline story for this issue of the newsletter is the steady increase in allocation of Communication stocks (we use GICS classifications and this includes all Internet, Telecommunication and Media stocks) since end September. This increase coincided with the sharp increase of Covid cases in the US (and eventually Europe). This would imply that investors expected more and more people to work from home. …
Singapore, Nov 30 2020
Welcome to Canopy’s Investor Behavior Newsletter (Week 49 of 2020), where we analyze trends seen in our investment reporting activity.
In our newsletter two weeks ago we had put a chart of investor’s asset allocation between equities and fixed income . At first glance it seems like risk appetite in both equities and fixed income is back to the Jan 2020 levels.
While risk appetite is certainly back, the chart above shows that the average maturity profile of fixed income portfolios reduced over the year.
At the same time there was a clear shift in allocations from Emerging Markets into Frontier Markets (see chart below). …
Singapore, Nov 17th 2020
Welcome to Canopy’s investor behavior newsletter, where we analyze trends as seen in our investment reporting activity.
After sharp selloffs in both equities and fixed income markets during the year, risk asset allocations have been slowly increasing and are now back to pretty much what they were at the beginning of 2020. Cash allocation which had increased to almost 20% during Mar-Apr is now back to a more standard 13%
Investor’s knee jerk reaction to the US elections has been to buy equities and reduce fixed income allocation (cash allocation has not changed much). …