Interesting flow pattern this week—big money still chasing large caps while small caps got dumped. Municipals leading fixed income tells you something about where wealthy investors see tax-advantaged safety right now.
Not surprising, but worth noting: when retail gets nervous, they abandon small caps first. Institutions stick with what's liquid and what they know. This pattern has played out in every late-cycle environment I've watched.
The muni bid is the quiet story here. That's not speculative money. That's people who've already made theirs, locking in tax-free yield before rates shift again.
Not surprising, but worth noting: when retail gets nervous, they abandon small caps first. Institutions stick with what's liquid and what they know. This pattern has played out in every late-cycle environment I've watched.
The muni bid is the quiet story here. That's not speculative money. That's people who've already made theirs, locking in tax-free yield before rates shift again.