Deutsche Bank: Changes in Investor Positions and Capital Flows

Although interest rate fluctuations have not undermined the overall equity allocation (which remains moderately overweight), there is significant internal divergence: large-cap stocks are overweight, small-caps underweight, systematic strategies remain elevated while active investors are underweight, and only the technology sector stands out. In terms of fund flows, both equity and bond funds saw inflows while money market funds experienced substantial outflows, indicating that risk appetite persists but is becoming more concentrated. Deutsche Bank remains constructive on US equities in the medium term (S&P 500 target of 8,000 points), but notes that the relative performance of technology has approached historical reversal thresholds, and systematic strategies are sensitive to volatility. Should interest rate fluctuations continue to rise, position vulnerability will be exacerbated. Source: Deutsche Bank, "Investor Positioning and Flows", October 2, 2026