Beaten up stock market will entice mechanical buyers
Credit Suisse is out with a note on month-end rebalancing. The rally in bonds and 7.26% decline in the S&P 500 leaves fund managers overweight bonds and underweight stocks.
According to their model, that would mean around $11 billion should flow into stocks before the weekend.
That's not enough to overwhelm any of the panicky moves this month but it's a small tailwind for risk assets.
