Not sure I follow. Isn’t the market cap of the S&P 500 ~75% of the total market cap of US equities? So isn’t it surprising then that the “biggest ever drop in US stock allocations” hasn’t had a bigger impact on the S&P?
I believe that chart is for mutual funds and ETFs ("funds").
The mutual funds and the ETFs still own the individual stocks (equities) that make up the "basked of stocks" owned by the "funds", but investors are redeeming their holdings in the "funds".
The market makers/firms that make a market in the stocks are responsible for an orderly market in those stocks.
If there are not enough buyers for the "funds" to liquidate shares in order to meet redemptions, the market makers/firms will own the shares in their account to take up the slack. imo
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Donald
Money is moving out of US stocks. I get that but those stocks still exist. Someone owns that stock.
Is the chart perhaps reflecting the 10% correction?
The mutual funds and the ETFs still own the individual stocks (equities) that make up the "basked of stocks" owned by the "funds", but investors are redeeming their holdings in the "funds".
As I understand it. (imo)
If there are not enough buyers for the "funds" to liquidate shares in order to meet redemptions, the market makers/firms will own the shares in their account to take up the slack. imo