FYI: .Unsurprisingly, the flow picture worsened dramatically over the past few weeks, as a market sell-off quickly unfolded. Nearly $18 billion was withdrawn from mutual funds over the two weeks ended October 17. One important aspect to emphasize is the fact that bond funds experienced outflows after weeks of inflows, while equity funds have regained favor with investors.
.Equity mutual funds experienced outflows of around $3.8 billion for the two weeks ended October 17. Worth noting, flows for the five days ended October 17 were slightly positive at $111 million.
.The flow picture in bonds deteriorated rapidly, with all bond funds seeing nearly $9 billion in outflows for the two weeks ended October 17. This is the first time bond funds experienced outflows for two consecutive weeks since the end of 2016.
.The market rout intensified after the U.S. Federal Reserve struck a hawkish tone at its September meeting, as revealed by the minutes published two weeks ago. The Fed appears oblivious to President Donald Trump’s comments that the central bank should not raise interest rates.
.Across the Atlantic, the European Central Bank left its monetary policy unchanged. President Mario Draghi said the Eurozone economy still needs a great degree of monetary policy accommodation, but warned that stimulus withdrawal will not be delayed despite a string of disappointing economic data
Regards,
Ted
http://mutualfunds.com/news/2018/10/30/mutual-funds-scorecard-october-30-edition/
