Deutsche Bank: Investors who reduced their positions in early August quickly added to their positions, and the stock market rebounded far above average

ChainCatcher news: Deutsche Bank's flow data shows that as global stock markets rebounded last week, investors who slashed their stock investments during the market volatility in early August quickly increased their holdings. Funds poured into index options, mega-cap technology stocks, cyclical stocks and defensive stocks.

Deutsche Bank said in a note on Monday that positioning by discretionary investors - who make the call on when to buy or sell - "jumped sharply last week, fully recovering (last week's) decline and now again well above average" in a sign of a swift recovery from a sharp sell-off.

Deutsche Bank also said trend-following portfolios including "volatility control" funds - which buy when markets are relatively calm and sell during turbulent times to contain losses - had also "significantly increased" their exposure to equities, although positions remained " Well below all-time highs."