ETF investors have been cutting their holdings in the market for eight consecutive sessions, with total reductions reaching 86% of the drawdown seen during April and May. While daily outflows haven’t exceeded those recorded on October 27th, it’s clear that investors are still cautious about the current market conditions.

The recent sell-off in the stock market has been driven by a combination of factors, including rising interest rates, geopolitical tensions, and concerns over inflation. As a result, many investors have become increasingly risk-averse, leading to a decrease in their exposure to the equity market.

It’s worth noting that while ETF investors have reduced their holdings significantly, the total amount of outflows hasn’t exceeded those recorded on October 27th. This suggests that investors are still committed to their long-term investment strategies, but are taking a more cautious approach in the short term.

The ongoing sell-off in the stock market has created opportunities for investors to buy into undervalued companies at lower prices. However, it’s important to remember that investing in the stock market always carries some level of risk, and it’s essential to have a well-diversified portfolio to manage those risks.

While ETF investors have reduced their holdings amid market volatility, it’s clear that they remain committed to their long-term investment strategies. As always, it’s important to be cautious and well-informed when making investment decisions, especially in times of market uncertainty.