Investment Rating - The report indicates a bearish sentiment with institutional clients being the largest net sellers of US equities, while private clients are net buyers [10][11][25]. Core Insights - There has been significant divergence in trading flows, with institutional selling and retail buying reaching the largest cumulative gap since 2008, indicating a potential shift in market dynamics [10][11]. - The report highlights that institutional clients sold stocks across 8 of 11 sectors, with the largest outflows observed in Technology, Staples, and Health Care, while inflows were seen in Industrials and Financials [10][11]. - Corporate buybacks have accelerated but remain below typical seasonal levels, suggesting cautious sentiment among corporate clients [10][11]. Summary by Relevant Sections Client Flows - Institutional clients have been net sellers for three consecutive weeks, with outflows totaling $3.8 billion last week, marking the largest rolling four-week average outflows since just before the 2024 election [10][11]. - Private clients have been net buyers in 29 of the last 31 weeks, indicating strong retail interest in the market [10][11]. - Hedge funds returned to buying for the first time in four weeks, suggesting a potential change in strategy among these investors [10][11]. Sector Performance - The Technology sector experienced the largest outflows, while Industrials saw the most significant inflows, reflecting a rotation towards cyclical sectors [10][11][16]. - The report notes that clients bought equity ETFs for the sixth consecutive week, with inflows across major styles including Blend, Value, and Growth [10][11][30]. Market Capitalization Trends - Large-cap and mid-cap segments saw outflows, while small-cap stocks experienced modest inflows, indicating a preference for smaller companies amidst broader market volatility [10][11][24][72]. - The cumulative net buying trends show that institutional clients sold across all market cap sizes, while private clients bought across large, mid, and small caps [10][11][72].