Deutsche Bank: Investors who reduced their positions in early August quickly increased their holdings, with the stock market rebound far exceeding the average level

ChainCatcher message, Deutsche Bank's liquidity data shows that as global stock markets rebounded last week, investors who significantly reduced their stock investments during the market volatility in early August quickly increased their holdings. Funds flowed into index options, mega-cap tech stocks, cyclical stocks, and defensive stocks.

Deutsche Bank stated in a report on Monday that the positions of fully discretionary investors (who decide when to buy or sell) "jumped significantly last week, completely recovering from the decline (of last week) and now once again far exceeding average levels," which is a sign of the market's rapid recovery from severe sell-offs.

Deutsche Bank also noted that trend-following portfolios, including "volatility control" funds (which buy during relatively calm markets and sell during turbulent periods to curb losses), have also "significantly increased" their stock investments, although positions remain "well below historical highs."