Common wisdom is that it wasn’t the insurers. They have been reducing their public stock market exposure, at least until recently. Nor was it pension funds or balanced funds that were also reluctant to go back into equities. Private investors missed at least a part of the rally, but started to re-enter the market in the second quarter, as shown by net inflows into equity-linked funds. So who was it? Hedge funds and banks? Hedge funds moved relatively early to take long positions on stock markets. But especially banks have been generating big profits from equity investments and equity trading. They have abundant liquidity from central banks, it is cheap and it is not being absorbed by corporate lending activities, where either the demand is low or the risks are too high.