Good evening from Copenhagen.

Every market reaction seems tied to Trump and the policies he might immediately implement. The ramifications are already visible, particularly in the Tech/Semiconductor sector, as he hints at easing conditions between China and the US on the tech front.

January is traditionally a weak month for equities, as participants sell positions to pay taxes. However, we haven’t seen the usual outflows from major US ETFs. This aligns with the sentiment carried into 2021, following a strong 2020 where equities posted solid returns. Despite the S&P 500’s 25% gain last year, outflows remain modest.

Are markets positioning for another solid year in equities?

Chart 1: Outflows are not nearly as big as previous Januarys