ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Retirement Income Channel
  2. Everywhere You Look, Investors Are Risk-Off
Retirement Income Channel
Share

Everywhere You Look, Investors Are Risk-Off

Karrie GordonApr 26, 2022
2022-04-26

Earnings season continues this week, but the confluence of global pressures, rising rate concerns, and new fears around a potential lockdown in Beijing in response to Omicron infections plays heavy on domestic markets and sentiment. This environment is seeing investors increasingly moving to a risk-off posture across all fronts as cash and cash-like assets gain in popularity, reports the Wall Street Journal.

The S&P 500 rallied initially last week, but a sell-off in the latter half of the week saw the index lose more than 4% within two sessions. As bonds and equities both underperform and markets continue to remain frothy, investors are seeking quality, with Treasuries rallying and commodities and crypto both falling, explains Mark Hackett, chief of investment research for Nationwide’s Investment Management Group, in a Nationwide blog.

“Though we’ve seen weak sentiment for the first several months of 2022, we’re now seeing weak equity flows, which is a notable but likely a short-term challenge. In this environment, investors should pay attention to the fundamentals, which are showing resilience,” Hackett writes.

The weakness in investor sentiment is impacting equity flows, which are experiencing some of the worst outflows since the onset of the pandemic in 2020 with a loss of $35 billion in just two weeks. Put/call ratios have seen a massive uptick as investors seek protection in such a challenging market environment.

“The AAII recently fell to a 30-year low, and the Bank of America Bull & Bear indicator has fallen to a contrarian ‘buy’ signal. Extremes in sentiment and flows have historically been seen at inflection points for the market, as extremes often lead to market reversals,” explains Hackett.

Earnings Season and Global Impacts

The negative sentiment is impacting earnings season, with many companies that have reported positive earnings (80% have reported above-estimate earnings) for the first quarter of 2022 not seeing a subsequent increase in their stock prices. Commentary coming from companies that have reported has been mixed, citing increased services spending and a strong macro backdrop going up against the pressures of a strengthening dollar and input cost pressures.

“Investor fears this year have shifted from the Omicron variant to the Fed and inflation to Russia/Ukraine, and now to the lockdowns in China, as the lockdown in Shanghai enters the fourth week,” writes Hackett.

Fears of a potential lockdown in Beijing due to Omicron infections while the Shanghai lockdown is still ongoing have sent China-related stocks and funds spiraling and have impacted broader markets, from oil prices to commodities. Add onto that the concerns of a half-point interest increase by the Fed after remarks from Chairman Powell last week that showed a clear preference for frontloading aggressive hikes, and it’s created a continuing turbulent time for markets.

Increasingly challenging times have advisors looking for income options for their clients. For those seeking retirement income opportunities, Nationwide a variety of actively managed ETFs for advisors that cater to a range of investment exposures and strategies, including seeking a measure of downside protection within the major indexes.

For more news, information, and strategy, visit the Retirement Income Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X