Mom-and-pop retail investors are zigging and big-money institutions are zagging as the market tries to figure out which way things are going after a record-busting year on Wall Street.
While the overall market mood is solidly bullish, recent fund flows show almost diametrically opposed views as to where money will be best treated.
Retail investors have been betting mostly on international rather than U.S. stocks, with a focus on small-and multi-cap funds.
Institutional investors, on the other hand, have been focusing on domestic stocks, with a tilt toward larger companies.
The sentiment of institutional versus retail is best gauged by examining dollar fund flows to exchange-traded against mutual funds. Market analysts at RBC Capital Markets believe the flows paint an interesting and complex picture.