What can we learn from the DJUSAG?Dow Jones US Asset Managers Index tracks the stock prices of many large money management firms used by the upper class and large pools of money (retirement funds, universities, etc.). Since the beginning of 2018, this index has suffered more than the S&P 500. This seems to indicate that very wealthy individuals and organizations have been pulling their funds out of the market.
This exit may have peaked between July and September as per the linked article:
"BlackRock Inc.'s cash machine is slowing, presenting new challenges for the world's largest asset manager. Clients withdrew a net total of $3.1 billion during the three months ended September 30, the first quarterly outflow from BlackRock since the second quarter of 2015. That included a net withdrawal of $17.3 billion from funds exposed to stocks."
Source: BlackRock Sees Outflow For Quarter -- WSJ
I intend to use DJUSAG as a signal during the coming months. DJUSAG resuming an up trend may be one indication of the US market returning to a healthy state.
