As we enter the new year, equity buying flows in the US have picked up significantly. According to UBS’s Rebecca Cheong, excess buy flow totaled $9 billion on Tuesday, up from $34 billion on Monday. This surge in buying can be attributed to retail investors, who are driving the market with their buy-the-rally trend.

Retail buying has been a key factor in the recent uptick in equity flows. While institutional investors have also contributed to the buying spree, retail investors have shown remarkable resilience and optimism in the face of market volatility. This is particularly notable given the ongoing pandemic and economic uncertainty.

Leveraged/inverse ETF rebalance has also played a role in the recent buying activity. On Tuesday, $7.1 billion was spent on buying across the board, with technology being the largest sector recipient at $4.8 billion. This indicates that investors are looking to hedge their bets and protect their portfolios from potential market downturns.

The recent surge in equity buying flows is a positive sign for the US economy and financial markets. It suggests that investor confidence is returning, and that there is renewed optimism about the future of the market. Of course, it’s important to note that any investment decisions should be made with caution and thorough research, but the current trend is certainly encouraging.