Investors are piling into U.S. equity funds at the fastest pace in years. But now the pendulum may swing back, warns Barclays

Barclays warned that the recent rally to record highs has been fueled by one of the fastest cash inflows into U.S. funds in recent years, leaving equities vulnerable to a pullback. The note is a positioning and flow concern rather than a fundamental deterioration, but it implies near-term downside risk if inflows slow or reverse.

Analysis

Barclays warned that the recent rally to record highs has been fueled by one of the fastest cash inflows into U.S. funds in recent years, leaving equities vulnerable to a pullback. The note is a positioning and flow concern rather than a fundamental deterioration, but it implies near-term downside risk if inflows slow or reverse.