We are about to experience a massive end-of-Q2 rebalancing period: Institutional investors are estimated to sell up to $165 billion in equities and purchase an equivalent amount of bonds by quarter-end, the highest in at least 4 years, according to JPMorgan. Japan's Government Pension Investment Fund (GPIF), with ~$1.9 trillion in assets, is estimated to sell ~$60 billion in equities, while Norway's Norges Bank, managing a ~$2.1 trillion sovereign wealth fund, is expected to sell ~$40 billion. At the same time, US defined benefit pension funds, managing ~$9.6 trillion in assets, could account for another ~$55 billion in equity sales. The Swiss National Bank is estimated to sell ~$25 billion, though this figure could fall to ~$8 billion if its equity allocation rises to 30% from the current 28%. Meanwhile, balanced mutual funds, managing ~$4.0 trillion in assets, are estimated to purchase ~$15 billion in equities. A massive quarter-end rebalancing wave is about to hit global markets.