FYI:
.Equity funds continued to be shunned by investors, with total outflows over the two weeks ended October 3 intensifying amid a global market sell-off.
.Nearly $18 billion were pulled out from equities in the two weeks ended October 3, almost double the outflows in the prior 14-day period. Meanwhile, bond funds experienced more than $7 billion in inflows. Hybrid mutual funds, which have both equity and bonds, have had $4 billion in outflows, bringing total outflows to more than $14 billion versus $7.4 billion in the prior two weeks.
.U.S. Treasuries have spooked the markets, with yields unexpectedly surging from 3.06% on October 2 to as much as 3.23% three days later. Yields have now stabilized at around 3.15%. To learn how rising interest rates can impact mutual funds, read here.
.Markets have sold off over the past two weeks, with the carnage intensifying over the past week. Rising Treasury yields have been blamed for the sell-off, but U.S. President Donald Trump pointed the finger at the Federal Reserve, calling the institution “crazy” for raising interest rates.
.Inflation in the U.S. is cooling off, likely giving the Fed reasons to think twice before making another move for the fear of not triggering another sell-off. The Consumer Price Index (CPI) rose 0.1% in September versus 0.2% expected. The CPI is up 2.3% year-over-year, falling from 2.7% in the prior month. Meanwhile, core CPI is up 2.2%.
.The U.S. unemployment rate has hit the lowest level in nearly half a century, falling to 3.7% in September from 3.9% previously. However, job growth has slowed, with 134,000 new positions created versus expectations of 185,000.
Regards,
Ted
http://mutualfunds.com/news/2018/10/16/mutual-funds-scorecard-october-16-edition/
