In a recent development, UBS retail market making (RMM) clients reported $128 million in outflows on Thursday. The heavy selling was primarily focused on the technology sector, with Semis, Software, and Hardware being the top three industries sold by UBS RMM clients. This marks the largest levels of tech outflows since April’s volatility.

The shift in investor sentiment towards tech stocks can be attributed to several factors. Firstly, the ongoing global chip shortage has had a ripple effect throughout the technology sector, leading to increased costs and decreased profitability for many companies. Secondly, the recent surge in interest rates has made equities more attractive to investors, particularly those seeking higher returns.

In contrast, gold ETFs have seen continued momentum in October, with inflows on pace to surpass September’s record levels. This can be attributed to a combination of factors, including the ongoing geopolitical tensions and central banks’ increasing appetite for gold reserves.

The outflows from tech stocks highlight the dynamic nature of investor sentiment and the need for constant monitoring and adjustment in portfolio construction. As market conditions evolve, it is essential to stay informed and adapt strategies accordingly.

The recent outflows from tech stocks are a testament to the ever-changing nature of the financial markets. By staying informed and adapting to market trends, investors can make better-informed decisions and position their portfolios for long-term success.