Flows are rotating into Financial Sector Cohort while Defense & Aerospace weakens

🇪🇺 Equity flows are shifting sharply toward the financial sector, with $STAN-L alone capturing over $75 billion in inflows while defense and energy names are quietly shedding nearly $10 billion. The dominant move into financials signals a clear preference for stability and yield, but the concentrated nature of the flow raises caution about overextension. The inflow into STAN-L is confirmed by broad participation across the financial cohort, while top outflows in defense and energy underscore ongoing risk aversion in cyclical sectors. Next, watch whether the financial inflows sustain and broaden beyond STAN-L or if the sector's rally stalls amid signs of fading conviction.