Deutsche Bank: Investors who reduced their holdings at the beginning of August quickly increased their positions, and the stock market rebounded far above average

ChainCatcher news, Deutsche Bank's liquidity data shows that as global stock markets rebounded last week, those 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 said in a report on Monday that the positions of discretionary investors (those who decide when to buy or sell) "jumped sharply, completely recovering from last week's decline and now once again far exceeding average levels," which is a sign of the market rapidly recovering from intense selling.

Deutsche Bank also stated that trend-following portfolios including "volatility control" funds (which buy when the market is relatively calm and sell during turbulent times to curb losses) have also "significantly increased" their stock investments, although positions are still "far below historical highs."