Tracking End-of-Month Re-Balancing

The video discusses the impact of market rebalancing and window dressing on asset allocation, particularly in the context of a recent market sell-off. It highlights how pension funds and money managers are adjusting their equity holdings to meet mandates, using Norway's sovereign wealth fund as an example. The video also explores varying estimates from financial institutions on the amount of equities to be added, ranging from $200 billion to $1 trillion. Historical trends suggest minimal impact from rebalancing, but current low liquidity could amplify effects. The video concludes with potential market and currency impacts, including a possible 3% increase in equities and a boost for the dollar.

What is the expected effect of month-end rebalancing on the market this time?

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How might the rebalancing affect the value of the dollar according to Deutsche Bank?

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