Go with the Flow(s)
“Life is really simple, but we insist on making it complicated”. Confucius. “There is no investment so good that there isn’t a fee large enough to kill it”. – Cliff Asness (AQR Capital Management). Fund flows are a well-established method of watching for trends in investment strategies. They tell us what the majority are thinking (or not thinking) at any given time. They normally arrive with a lag of several weeks or even months, so it is dangerous to use them for timing purposes, but they give a good steer on investment sentiment, particularly within Institutional investors.